Get ready for higher PC prices should Intel recede on its "Intel Inside" marketing program
The PC market is still afloat despite predictions of decline in the years ahead and the flattening trend is a major concern for Intel as it is the largest manufacturer of PC processors worldwide. In response to the stagnating PC market, the chipmaker has been steadily reaching out to other areas such as "smart" clothing, AI, servers, the "Internet of Things", and self-driving cars to bolster future revenue.
Intel's new expanded focus could mean setbacks to its once thriving PC market as investments are diverted elsewhere. According to an Intel representative speaking to CRN.com, the chipmaker will be making "changes" to its long-running "Intel Inside" program that will include cuts to funding. The exact time table or details as to when we can expect Intel to truncate the program remain unknown.
While the announcement may sound trivial, deep cuts to the "Intel Inside" program could ripple throughout the PC industry. As mentioned by the source, there are numerous OEMs that rely on the program and its financial compensation and marketing benefits provided by Intel. The weaker relationship between Intel and traditional PC makers could lead to higher component prices and less public exposure than before. The higher costs and potentially lower sales could ultimately lead to higher prices for the consumer. OEMs speaking to CRN.com under anonymity have already begun predicting price increases as the Intel program has been a major incentive for manufacturers to sell in larger volumes at lower prices per unit.
The slow death of "Intel Inside" is perhaps unexpected considering the aforementioned market trends. It signifies yet another step for the the company away from the traditional PC space and more into the general consumer space where the potential for growth is seemingly more promising.