![[Editorial] Intel, a cautionary story](https://i0.wp.com/images.koreaherald.com/koreaherald/version03/www/images/share.jpg?w=860&resize=860,0&ssl=1 "[Editorial] Intel, a cautionary story")
In South Korea, Intel and Samsung Electronics was talked about collectively because the main examples of modern frontrunners within the world tech enterprise. Sure, they had been; nonetheless, they now not take pleasure in such flattering comparisons.
Bother-laden Intel is ready to get replaced by Nvidia on the Dow Jones Industrial Common index Friday, a surprising setback for the US-based chipmaker in a altering panorama the place even a expertise behemoth can get kicked out of the index of blue-chip firms.
The choice got here after a number of unhealthy information for Intel. The corporate’s inventory misplaced greater than half of its worth this yr, reflecting disappointing earnings and a dismal outlook. In August, Intel introduced it will lay off 15,000 workers all over the world, and the painful course of is now underway.
The sweeping modifications that Intel has undergone provide a cautionary story for different expertise leaders, together with Samsung, which is at the moment confronting its personal points and unsure outlook.
On the peak of its development part, Intel led an eye-popping advance within the world tech trade by churning out sooner and sooner processors for desktop and laptop computer computer systems in common intervals that set an indeniable commonplace.
Equally, Samsung — although topic to cyclical fluctuations of provide and demand — additionally spearheaded its main place within the world reminiscence chip market with modern expertise and know-how. Samsung, the most important reminiscence chipmaker on this planet, expanded its turf into the worldwide smartphone, TV and residential equipment markets.
The 2 tech heavyweights, nonetheless, are in a sorry state. In a not-so-enviable race, Intel has outpaced Samsung by way of the velocity at which it fell right into a bottomless pit, due largely to well-known failures — complacency, strategic misjudgments and shortsighted management — that resulted in missed alternatives in superior graphics and synthetic intelligence, in addition to Intel’s gradual and timid response to new rivals armed with cutting-edge merchandise and options.
Intel, saddled with high executives who did not foresee a drastic shift in expertise developments, didn’t develop new chips for brand new industries in a well timed method. Consequently, the corporate discovered itself stranded in a whirlwind of smartphone revolution pioneered by Apple’s iPhone and the AI graphics increase led by Nvidia. Six years in the past, it missed a golden probability to put money into OpenAI, the creator of ChatGPT.
On the coronary heart of the issues is Intel’s misguided concentrate on enterprise and monetary outcomes quite than racing to remain forward by way of technological innovation, the very basis of its legendary development.
Unfavorable assessments of Intel’s efficiency will not be restricted to inventory traders and tech pundits. South Korean PC players are pretty conversant in the soundness points plaguing Intel’s thirteenth and 14th era chips. They’re now disenchanted once more on the lackluster efficiency of Intel’s newly launched fifteenth era gaming chips in comparison with AMD’s highly effective chips.
Given the fast-paced shifts within the world expertise market, Intel’s deepening woes may very well be repeated at different expertise giants. Samsung, for its half, reveals indicators of issues in its chip and smartphone companies. The South Korean chipmaker did not make it into the availability chain for Nvidia’s AI chips. Samsung additionally finds it onerous to slender the expertise hole with world chief TSMC within the foundry enterprise sector. Even the efficiency of its reminiscence chip enterprise is less than market expectations.
Within the smartphone market of South Korea, Samsung’s residence turf, Apple is quick increasing its share, particularly amongst younger individuals. Samsung can also be going through criticism for shamelessly copying what Apple does in areas reminiscent of design, packaging and new product presentation. Similar to Intel, Samsung has high quality points. As an example, Samsung’s newest earbuds, the Galaxy Buds 3 Professional, sparked a firestorm of person complaints relating to defects once they had been launched in July, a results of the corporate’s poor high quality management.
Samsung should shake off complacency and be taught a lesson from Intel’s troubles if it doesn’t need to be left behind by blazing competitors within the world expertise market.
