Intel's New Strategy: 50% Margin Minimum for New Products

• Facing financial struggles and underperforming products like the Gaudi AI lineup and Arrow Lake CPUs, Intel has implemented a new strategy under CEO Lip Bu-Tan to prioritize profitability.

• This strategy mandates that all new products must achieve at least 50% gross margins, leading to the cancellation of projects failing to meet this threshold and a shift in resource allocation.

• Intel's Products CEO, Michelle Johnston, confirmed this at the BoA global technology conference, indicating that future CPUs such as Panther Lake and Nova Lake will be designed with higher margins in mind.

• Furthermore, Intel plans to continue its dual-sourcing strategy for its foundries, utilizing both its internal facilities and TSMC for its next-generation Nova Lake processors, aiming for optimal product quality and market competitiveness.

https://wccftech.com/intel-new-products-wil...ast-50-margins/

how much GM % is considered okay anyway?

20%? 30%?

If have strong products then can loh. But seems like don't have much break thru also...

If it affects Desktop, people will just either go with AMD, or if AMD also does the same, people will simply choose not to upgrade for a long time. It still not going to help profit if sales volume declines.

With AMD around, probably just mean need to lower and maximize the costs to achieve that 50% margin...

But 50%...Personally I also can only wish them good luck...

Normally even achieve 30% also consider a win already...

Datacenter product maybe can. Consumer market hard to reach 50% profit. Intel abandon enthusiasts market

If their R&D isn’t up to par, they’re going to release shittier products at a higher price than their competitors.

habislah gpu business, market share rendah pon nak margin besar.

Change sell ckt can kot 50% margin

datacenter market also got AMD already nowadays.. AMD also heavily invest in this area.. good luck to intel..

https://www.digitimes.com/news/a20241114VL2...rket-intel.html

This post has been edited by brkli: Jun 7 2025, 12:58 AM

if they can have an answer to cuda on their cpu then they can charge 10k per cpu lor. sell word processor forget it...

Intel ruled tech. Now it’s in deep trouble
https://edition.cnn.com/2024/12/04/tech/int...nger-retirement