Here's how Intel CEO dodged a question about one of the biggest threats facing his company
Ethan Miller/Getty Images
And with ARM getting acquired for $32 billion by Japan's Softbank, which is pledging to invest more in the company, Intel can't take the situation lightly.
During Intel's earnings call with investors, CEO Brian Krzanich was asked about the ARM acquisition and what he thinks about the growing competition between the two companies.
Krzanich's answer: competition is good, but we're competing against our own technology.
"There's always going to be competition in this market. I expect it...it's always been out there," Krzanich said.
Krzanich went on to point out that Intel's always been a company competing against its own technology, in a clear reference to the Moore's Law, the industry standard that stipulates the number of transistors in a chip doubling every two years, first established by Intel cofounder Gordon Moore. He continued:
"We are built on a model that says we have to build a continuous improvement of our product such that we're replacing ourself with a better cost per performance model over time. And so we know that even if there was no competition, we've got to build a product that's better and drives replacement as well as growth...we really have to build a product that are so competitive that people want to replace our product with our new product. That's been one of the best models to use for making sure we stay ahead."
Krzanich's comments make sense, but it does raise some concerns as Intel has been delaying the Moore's Law process from 2 years to closer to 2.5 years lately. In fact, Krzanich said last year that the 2.5 years could become the new standard, potentially putting Intel in a less competitive position.
Intel reported in-line numbers for the quarter, but its stock dropped in after hours as its data center business saw another slow down. Although Intel owns over 90% of the data center market, ARM could become a bigger threat in the market long-term, as it's already signed up big companies like PayPal to use ARM-based chips in its data centers.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- Unemployment among Indian youth is high, but it is transient: RBI MPC member
- Private Equity Investments
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market