Intc at Citi Conference
Kirk Skaugen – Senior VP and General Manager, Client Computing Group
What I said on stage in Germany is that, this is a once in a decade moment for Intel. It’s probably only a couple of times that I’ve been in Intel 23 years, where you have a brand new operating system like Windows 10, combined with the best processor introduction in Intel’s history, which is 6th Generation Core, which we had codenamed Skylake.
And it’s interesting because as we look at tablets and what’s happened with the tablet market; we did see a push-out of PC purchases. So what our research says time and time again is that those are traditionally companion devices and that people are still waiting for the time to refresh to another desktop or another Notebook.
In a Notebook computer, under six pounds now, you can get the same performance of what you had three years ago in a 61 pound Tower.
One of the things that we’re excited about is the 2-in-1 category. So saw IDC set the 2-in-1 which some people said is it a toaster and a refrigerator trying to be put together. It turns out, people actually like these devices.
And so as you look at the installed base today, with this Windows 10, this new introduction you now have 1 billion PCs in the market that are over three years old and 0.5 billion PCs in the market that are four to five years old. And that’s just an enormous opportunity for refresh, before you even go after the first time buyer. And these PCs literally just won’t run a lot of the applications today, whether you like 4K content that’s coming online, whether you want a touchscreen, not to mention the security level is huge. So it’s a once in a lifetime opportunity. So why are we excited? If you just look at what you can refresh.
We like gamers because believe it or not there’s 1.8 billion people that game in the world. 1.2 billion of the 1.8 are PC gamers…. 711 million people in the world consider themselves an active PC gamer. That means they buy a PC game once a month.
we have an initiative with Microsoft. I can confidently say today, you can eliminate all your passwords today if you buy a 6thGeneration Core system. And you do that two ways; by an Intel RealSense camera enabled PC that has this security of 3D facial login. So it actually measures, you can do everything from measure blood pressure, blink detection, all these kinds of things.
Q2 was tougher for us just because of Windows 10. People were leaning down their inventory on Windows 8, getting ready for Windows 10. So we are expecting a slightly better than seasonal or high-end to seasonal for the second half now.
I joined the server business when we were getting beat by Opteron and the reality is that we had missed a few key strategic inflexion points at Intel and it took a couple of years to recover, and there is one thing about semiconductor is that you are innovating, you are going to gain share, and you are going to grow average selling prices and if you miss an innovation cycle or two, it’s pretty brutal.
is, in the Cloud space, some of these customers buy may be 1 million servers a year, pretty crazy when you think about it.