The year 2022 witnessed Intel’s biggest profit losses in recent years. On the other hand, the current market shares slightly overshadow the seriousness and magnitude of the event, but experts describe the situation that the company went through as “Intel’s historic collapse”.Financials don’t look good for Intel
Let’s start with a little reminder. Almost all arrows are down in Intel’s financial results for the last quarter and full year of 2022. While the company announced a loss of $661 million in the last quarter, it reported that it recorded a profit of $8 billion, with a 60 percent decrease (in 2021 – $19.9 billion) for the full year 2022. In fact, Intel predicts that the decline will be high in the first quarter of 2023. However, although Intel is still far ahead in terms of market share, it has fallen behind AMD in terms of market value.
To increase its revenue, Intel plans to save 8-10 billion, starting in 2023 and continuing through 2025. Intel’s plan to cut costs could result in layoffs and withdrawal from or reducing its presence in markets outside of its core business segments.Industry-wide PC sales, meanwhile, have dropped 30 percent overall, but poor market conditions aren’t the only problem with Intel. Strong competition from AMD was also effective here. For example, Intel’s PC and server share has dropped from around 90 percent in 2017 to 70 percent now. Then there is TSMC, which produces as many chips as Intel. Things will get even more interesting in the coming years as companies like Nvidia, Apple and even Amazon enter the processor market.
Intel confident to regain what it lost against AMD
Despite this, the statements of Pat Gelsinger, Intel’s Chief Executive Officer, to investors during a conference call, “We lost share, we lost momentum. We think it will stabilize this year” are important. Intel is confident that somehow it will get back the slices of pie it lost. On the other hand, Intel has to deal with very tight and large amounts of inventory. That in itself is a long road. However, with all of this, Intel is considering launching the company’s next-generation Meteor Lake processors, which have the company’s first chip design, this year.
36561
