Opinion Pat Gelsinger may need to be concerned about Arm-compatible PCs impacting Intel’s profit margins, contrary to his beliefs.
During Intel’s Q3 earnings call, Gelsinger reassured investors that Arm PCs posed an “insignificant” threat. However, looking back at history, there was a time when x86 was not the sole option for PC architectures. It wasn’t until Apple switched to Intel in 2006 that x86 took control of the PC market.
Could history repeat itself with Arm chipmakers pressuring Intel and AMD? There is evidence to support this possibility. Arm PCs, particularly Apple’s M-series chips, have demonstrated competitive performance and increased efficiency compared to Intel and AMD processors.
The efficiency factor is crucial, as performance is not the only criterion that makes Arm-compatible processors appealing. What good is high performance if it drains your battery quickly or increases your power bill significantly?
For instance, Apple’s first-generation M1 MacBook Air performs similarly to Intel’s latest-generation mobile chips on GeekBench 6 but boasts 12 hours of battery life and operates without active cooling.
Despite any criticisms of Apple, their silicon is solid. So much so that Gelsinger sounded the alarm at Intel shortly after becoming CEO, emphasizing the need to deliver superior products compared to Apple’s offerings.
Apple Silicon’s success has not gone unnoticed. Qualcomm recently unveiled its Snapdragon X Elite SoC, which promises to rival Intel, AMD, and Apple in terms of performance and power consumption.
Nvidia is also reportedly developing an Arm-compatible CPU for the PC market, potentially launching in 2025. Additionally, there are rumors of AMD exploring the development of its own Arm-based processor.
On Monday, Apple is expected to unveil its third generation of M-series silicon, leading to speculations of a significant announcement.
Furthermore, Microsoft believes Arm PCs will capture a significant portion of the market, offering an “Arm Advisory Service for developers” and citing research that predicts a 25% market share for Arm-powered PCs by 2027.
While Windows software compatibility poses a hurdle for Arm chipmakers, as legacy x86 apps require emulation, Apple has proven that with the right combination of hardware and software, the transition can be successful.
Gelsinger’s optimism about Arm’s insignificance as a threat to Intel’s PC business may be short-sighted. Arm has already demonstrated its versatility, with the Arm-based Fugaku supercomputer reigning as the number one system for two years. Ampere Computing’s Arm-compatible CPUs are also gaining traction in cloud servers.
Dismissing the potential for Arm’s success in the PC market is simply absurd. ®
