#4 Intel’s Server Business Is Also Not Safe

As we know, Intel surpasses competitors in high performance chips that powers servers. And with the growth of cloud computing, more and more servers are getting established in various parts of the world. But technology firms have already started searching for methods to reduce the power consumption of these server farms.  Most of the power is consumed by these processors and the systems used to cool them.

So the companies are trying to use the same processors that power a Smartphone, to fuel the entire web itself. This essentially means Intel has to fight the same battle it’s going through in mobile space. Moreover, the trend is going to spread soon.

#3 Intel To Lose Its Unique Advantage

Intel’s secret to produce cutting edge technology along with keeping low margins is that, unlike other designers, Intel owned the microchip fabrication plants. But with the new technologies demanding new plants, which approximately cost a whopping $7 billion, Intel will hesitate to build one.

Moreover, Intel will require a strong market position of the emerging tech components, even if it wants to build one and justify it. But Intel neither has it and its going to lose the “technology edge,” it always enjoyed.  

Even if the tech giant manages all of it, it’s going to step into a highly competitive market place, which is less profitable.