Intel Promises Cheaper PCs, Server ASPs Show Changes in Market Share

Strategic Insights -

Intel CEO Paul Otellini made a significant announcement during a trip to India, promising the launch of Intel machines made by local OEMs (Wipro, HCL Infosystems, and Zenith Computers) with prices 20% lower than similar configurations in the market. These new machines are expected to be priced around $220, the current lowest price point in India. Additionally, Intel has partnered with Icici Bank to offer consumer financing options. Otellini also announced plans to offer students and academicians a $400 notebook in the coming year.

Key Takeaways:

  • Intel is set to launch cheaper PCs in India, with prices 20% lower than similar configurations, expected to be around $220.
  • The new PCs will be manufactured by local OEMs, including Wipro, HCL Infosystems, and Zenith Computers.
  • Intel has partnered with Icici Bank to offer consumer financing options for these new PCs.
  • Intel has plans to offer students and academicians a $400 notebook in the coming year.
  • Server ASPs show changes in market share, with AMD and Sun experiencing significant growth.
  • Gartner reports AMD with 26% of the x86 server market, up 186% year-over-year.
  • IDC gives HP the lead in revenues, but Gartner says IBM is still out front.
  • Sun is up for the first time in two years and up 7.6% year-over-year, according to Gartner.
  • HP is up 8% in units and up 8% in revenue, according to Gartner.

Statistics:

  • The cheapest boxes in India now reportedly cost around $220.
  • Intel is promising prices 20% lower than similar configurations.
  • Gartner reports the first quarter server sales at $12.35 billion, up 13.7% YoY.
  • IDC reports worldwide revenues down 1.9% to $11.9 billion.
  • Gartner gives AMD 26% of the x86 server market, up 186% YoY.
  • IDC gives HP the lead in revenues.
  • Gartner gives HP 538k units, up 8%.
  • Gartner gives Sun 31.4% of the Unix revenues and 51.2% of the shipments.
  • RISC-Itanium servers were down 5.1% in revenues and down 0.9% in shipments, according to Gartner.

Sources:

  • Gartner
  • IDC
  • Intel CEO Paul Otellini's announcement in India