I struggle to consider this much diversity -- Intel's business here provided vertical integration but if the buyer chose against Intel for the chip, they chose against Intel prebuilts as well automatically. This is opposed to an "open market" end product builder like Samsung's mobile division, which chooses Exynos opponents regularly.
It's actually the fact that SELLING and ASSEMBLING servers is a VERY low margin business. Usually 2-3%. Why would they bother? When their core business wants 50% or more margin.
Apparently, Intel no longer needed the vertical taper to pull others along and in relation antitrust remedial by selling DCS to Mitac, Intel divested to separate itself from direct engagement with their long time (since 1990s) SA board cartel operation that Mitac will now be engaged as a partner clearing house essentially servicing (claiming) the South America IT enterprise and commercial systems integration markets. Interesting development. mb
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StevoLincolnite - Thursday, April 13, 2023 - link
In short, they are de-diversifying... Which opens the company up to being financially vulnerable if their core markets falter for any reason.Also makes me wonder how much longer they are going to stick with the GPU market... They have a track record of giving up quickly.
GreenReaper - Thursday, April 13, 2023 - link
Better to fail fast than slow. Pat is selling to willing buyers at the current fair-market price, so that he may survive.lmcd - Thursday, April 13, 2023 - link
I struggle to consider this much diversity -- Intel's business here provided vertical integration but if the buyer chose against Intel for the chip, they chose against Intel prebuilts as well automatically. This is opposed to an "open market" end product builder like Samsung's mobile division, which chooses Exynos opponents regularly.stanleyipkiss - Thursday, April 13, 2023 - link
It's actually the fact that SELLING and ASSEMBLING servers is a VERY low margin business. Usually 2-3%. Why would they bother? When their core business wants 50% or more margin.Bruzzone - Thursday, April 13, 2023 - link
Apparently, Intel no longer needed the vertical taper to pull others along and in relation antitrust remedial by selling DCS to Mitac, Intel divested to separate itself from direct engagement with their long time (since 1990s) SA board cartel operation that Mitac will now be engaged as a partner clearing house essentially servicing (claiming) the South America IT enterprise and commercial systems integration markets. Interesting development. mb