Intel’s Network and Edge Business Struggles

Share post:

Intel’s network and edge group has seen significant growth in recent years, but sales plummeted by a third to less than $2.9 billion, resulting in a $487 million loss. Intel attributed this decline to customers reducing purchases to adjust to lower demand across product lines.

Competition from advanced silicon, like Nvidia’s GPUs, poses a threat to Intel’s edge business. Demand for GPUs has surged, driving Nvidia’s share price up 227% since the start of the year. Despite these setbacks, it’s unclear if Intel achieved its 40% market capture goal in 2022.

Nokia also faced difficulties when Intel missed delivery targets for 10-nanometer chips designed for their initial 5G products, temporarily disrupting their 5G strategy. Meanwhile, Intel’s relationship with Ericsson is expanding, with future plans to manufacture customized 5G chips using their next-generation processes.

Intel boasts a 99% share of virtual RAN deployments, however, the market for open and virtual RAN products has not taken off as quickly as expected. Dell’Oro predicts a 13% shrinkage in the RAN market in North America this year, impacting Ericsson and Nokia’s profitability.

The sources for this piece include an article in DataCenterKnowledge.

Featured Tech Jobs


Related articles

Spencer addresses Xbox leak

Microsoft's Xbox chief Phil Spencer has reassured fans that their plans for the future are still in place,...

Microsoft’s Xbox secrets leaked

A massive leak of confidential Xbox documents has shed light on Microsoft's intricate plans for its gaming console....

Salesforce announces 3,300 hires

Salesforce has announced hiring 3,300 people across various departments. The new hires will be split roughly equally among...

Amazon Prime Day to return in October

Amazon has announced that its second Prime Day sale of the year, Prime Big Deal Days, will take...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways