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Is Acer Doomed?
Taiwanese PC maker Acer reported worse-than-expected quarterly loss. Actually, it had been expected to be bad, but no one had predicted it would be this bad.
For the fourth quarter, the world’s No.4 PC vendor reported a net loss of $254 million. The company had posted a worse-than-expected net loss of $446 million in the third quarter and a $112.31 million loss in the same quarter of 2012. In short, its troubles have been getting worse for more than two years.
At the end of last year the company named former Taiwan Semiconductor Manufacturing Co sales executive Jason Chen as its new CEO and launched a new initiative to integrate hardware, software and cloud services. It will be a while before the new broom can sweep out two years of doom, so many are expecting more doom to emerge. Acer relied too heavily on making low-end laptops, which weakened its brand, it also missed the shift to mobile.
Acer’s senior executives are taking a 30 per cent voluntary salary cut starting January, the company said in a statement.
Can Acer Go High-End?
Most popular for its low-cost laptops, Acer doesn’t really inspire thoughts of premium products. But building high-end hardware could be the Taiwanese vendor’s best chance as it looks for a way to rescue its struggling business.
With consumers flocking to tablets and smartphones, Acer’s once-thriving PC business has been left in the dust. Quarterly financial losses have become routine at the company and its PC shipments declined more sharply in the past year than at any other major vendor, according to IDC.
The grim situation forced CEO J.T. Wang to resign from his post last Tuesday. Acer will also cut 7 percent of its global workforce and has assembled an advisory committee to come up with a new strategy, the company announced.
Bright spots are hard to find. The Wintel model that propelled Acer for years and helped it become the second-largest PC vendor in 2009 has been falling apart amid the demand for mobile gadgets. And Windows 8 and Intel’s Ultrabook strategy have failed to resuscitate the market.
It hasn’t helped that Acer is so reliant on sales to consumers, said IDC analyst Bryan Ma. The entire PC industry has been hurt by tablets, but Dell and Hewlett-Packard have at least managed to find cover selling PCs to businesses, which are still buying them. And Lenovo has capitalized on its position in China, now the world’s largest PC market.
“Acer didn’t really have the commercial PC business to protect themselves. That’s why they were hit harder,” Ma said.
Acer — whether to its benefit or detriment — has instead gained a reputation for low-priced PCs. Even in tablets it has tried to undercut rivals — its Iconia W4, an 8-inch Windows 8.1 tablet, starts at US$329.99, while its Iconia B Android tablet goes for $129.99. The low prices have helped keep the company on consumers’ radar, but at the expense of profits.
One option for Acer is to build a brand as a higher-end PC player. It took a step in that direction last year with the Aspire S7, a Windows laptop with a slender, aluminum chassis that sells for $1,200 and up. That product and its successors have had some success for the company, with sales of 2,000 to 3,000 units per month, said James Wang, an analyst with research firm Canalys.
“I think Acer has started to learn they are able to sell some expensive products,” he said.
Selling higher-end PCs could help stop the bleeding in Acer’s finances, but with the overall PC market still shrinking it’s unlikely to help it expand in any meaningful way. “You can’t really expect vendors in desktops and notebooks to find growth,” Wang said. “You win in the market by not falling in shipments.”
Intel Goes AI
Intel has written a check for the Spanish artificial intelligence technology startup Indisys.
The outfit focuses on natural language recognition and the deal is worth $26 million. It follows Intel’s recent acquisition of Omek, an Israeli startup with specialties in gesture-based interfaces. Indisys employees have joined Intel already. Apparently the deal was signed on May 31 and the deal has been completed.
Intel would not confirm how they are using the tech: “Indisys has a deep background in computational linguistics, artificial intelligence, cognitive science, and machine learning. We are not disclosing any details about how Intel might use the Indisys technologies at this time.”
Haswell Refresh Coming Next Year
Intel has been executing its tick tock strategy flawlessly since January 2006 and now there is some indication that we might see the first slip in 8 years come 2014. Intel’s latest roadmap claims that in 12 months from now, in Q2 2014 Haswell will be replaced by a “Haswell refresh”.
Haswell is a tock, a 22nm new architecture and Broadwell is supposed to be based on Haswell fundamentals, but shrunk to 14nm like a proper “tock”. In case that the Haswell refresh is a tweaked 22nm core, this would mean that after 7 years of execution and billions of investments in cutting edge fabrication processes, Intel would have to slow things down.
It is not certain what would happen to 2015 Skylake, a new 14nm architecture, or the 10nm Skymont that is supposed to be the shrink, but in case Broadwell gets pushed back by a year there is a big possibility that the whole roadmap would slip a year.
When it gets ready the Haswell refresh (possibly a disguise name for Broadwell ed.) is replacing Core i7, Core i5, Core i3, Pentium and Celeron based Haswell chips, some sooner rather than later.
The chipset responsible for Haswell refresh is already branded as Z97 and H97 in desktop versions replacing the Z87 and H87 boards proving that the socket are likely to continue existing at least through 2014. It will be interesting to see the developments and if Broadwell is really delayed or this is just game of words on Intel’s part.
Does Haswell Need A Separate GPU?
Nvidia actually has a person with the catchy title of Chief Blogger and this person managed to get “an interview” with Rene Haas a VP and GM of computing products that currently takes care of Geforce mobile among other things.
Rene was asked to explain “why Gamers still need a discrete GPU with Haswell” and the answer is as logical as why do you use a seatbelt. Rene expects that Intel will continue to suck in graphics (our words not his ed.) and that that most popular games won’t play well on Haswell at standard resolution.
It seems that history really does repeat itself, as Intel had big claims for both Ivy Bridge and Sandy Bridge had been struggling to run new games of their time. Any serious gamers know that the answer is a proper discrete GPU. Haswell won’t change that, claims Rene.
It looks like Nvidia will have at least as many design wins as with Ivy Bridge, and Ivy Bridge was the record number or design wins for Nvidia. Rene claims that with this refresh Nvidia will have as much as 95 per cent of the gaming notebook which is nothing short of spectacular.
Rene also attacks Intel boldly claiming that “Their (Intel) comparison is misleading on a number of fronts.” Commenting the fact that Intel claims that GT3e will be faster than Geforce GT 650M. Intel based its claims on synthetic benchmarks, something that can be optimised, while Nvidia prefers real games, and even if GT3 wins again Geforce GT650, the new Geforce GT 750 is much faster than its predecessor and will have double the performance of GT3e in games.
Rene reminds us that GT3e is only available in top quad core mobile cores such as Core i7 4880QM that usually find their place in $3,000 notebooks. Rene tells customers that getting a Core i5 of Core i3 notebook with a better discrete GPU is the right way to get better gaming performance, although the vast majority of consumers already know that.
We remember that the last time we sat down with Rene, he said that when Intel gets faster with Integrated, Nvidia will simply gets even better with its corresponding low-end products and offers something faster. The cat and mouse game never ends.
Intel Releases More Celeron CPUs
Intel added three curious ultra-low voltage chips to its official price list and their official designations is strange.
All three are 22nm parts and their product numbers are N2805, N2810 and N2910, which seems to indicate that they are Atoms, but they are listed in the ULV Celeron M section, reports CPU World. The top SKU features four cores with no hyperthreading, which means that it is probably based on the new Valley View M core.
The N2805 is a dual-core clocked at 1.46GHz, with a single megabyte of cache. The N2810 is also a dual-core, but it’s clocked at 2GHz, while the N2910 is the previously mentioned quad-core, with 2MB of cache and a clock speed of 1.6GHz. All of them are priced at $132, which sounds like way too much for Atom branded parts.
With Temash and Kabini just around the corner, Intel needs to step up its game in the low-end low-voltage market fast, but at this point it seems that AMD be the first to market and it will enjoy at least a few months on top. Even when Intel launches its first 22nm Atoms, it won’t have an easy time matching AMD’s price or performance.
Haswell Core i7 Overclocked To 5GHz
As we draw closer to the launch of Intel’s 4th generation Core CPUs, or Haswell, it is no wonder that we are starting to see more leaks and one showing Intel’s Core i7 4770K overclocked to 5GHz at 0.9V certainly drew a lot of attention.
An impressive overclocking achievement was spotted by Ocaholic.ch and shows a CPU-Z validation of Core i7 4770K overclocked to exactly 5005.83MHz at just 0.904V. As far as we can tell, Hyper-threading was disabled and it is not clear if the CPU is actually stable enough to run anything, but in any case, it is still an impressive result, especially at such low voltage.
The rest of the specs include 4GB of DDR3 memory and ASRock’s upcoming Z87 Extreme4 motherboard.
Will Intel Buy AMD?
A few years ago it would have been impossible for Intel to acquire AMD, simply due to regulatory constraints put in place by the FTC and the European Union. Intel had more than a 60 percent of the PC and notebook market, so picking up AMD, a company that has some 20 percent of the market, would make Intel a real monopoly.
In the last two years the iPad, smartphones and ARM based tablets have changed the landscape, eating up Intel’s revenue and market share. It is true that most people, especially professionals and the business crowd, use x86 processors, but this is rapidly changing as home users are happy with emailing, browsing and playing some games on their iPad or other tablets. This puts Intel in a world trouble, as the PC market nosedived by 14 percent last quarter, due to a lack of interest for new devices and upgrade.
Tablets are becoming couch browsing devices, people use their smartphones to read news on the go and sometimes at home. More and more users don’t even touch their notebooks or desktops at home. With ARM staying the dominant instruction set in the phone and tablet space, Intel is facing a serious issue as Apple, Samsung, Qualcomm and Nvidia are all making money on ARM chips.
With this in mind, this would be the main reason for Intel to pick up AMD. AMD would not cost them that much, as Intel still has billions in bank, but with AMD, Intel would gain great graphics, something that the company has been struggling to crack for many years. It would make Intel slightly more competitive, but it would not solve all of its problems.
ARM manufacturers also face challenges, they need to produce more powerful chips and deliver a better user experience in order to win more notebooks and detachable devices, but this is going well with non-Apple based tablets. Apple uses ARM, so in the tablet world ARM is winning this fight, but Qualcomm and Nvidia as two independent chip manufactures could do a much better job at getting popular design wins. The Snapdragon S800 and Tegra 4 will get these two companies a step closer, while Apple will continue making good chips for iPads and iPhones. Let’s not forget about Samsung, as it makes many chips for its phones and tablets.
AMD gained 14 percent on May 1st, and an additional 5.9 percent yesterday, getting its stocks up to $3.41. Back on April 30th, AMD stock was trading at $2.68. In last three days of trading AMD gained 27.24 percent or $0.73 per share, which is a huge leap for a company with a 52-week low of just $1.81.
Intel’s Haswell Arriving In June
Intel has announced that it will launch its next generation Haswell processors at Computex.
Intel showed running Haswell silicon to journalists last month at the Game Developers Conference (GDC) in a bid to talk up the upcoming chip’s GPU. Last Friday the firm announced what some already knew and many had already guessed, that it will launch Haswell at Computex in June.
Intel published a blog post on 26 April saying that the fourth generation Core processor known as Haswell would arrive in 3,337,200,000,000,000 nanoseconds, which worked out to just under 39 days. The countdown figure matched perfectly with the start of Computex on 4 June, and confirmed what an Intel insider said that the chip would be launched at Computex.
The fact that Intel is using Computex to launch its next generation chip is not surprising, given that there are few big IT shows during the summer and launching the chip later will not give the firm’s system builder and OEM partners enough time to gear up marketing for the lucrative back to school and holiday buying seasons.
While Intel’s Haswell launch is a big event for the firm, it isn’t the most important. Rather, the firm is expected to launch updated low-power Atom chips that it hopes will help it compete in the tablet market, a market that is growing, as opposed to the PC market that Haswell addresses.
Intel’s decision to launch at Computex means that the late spring computer industry show should be awash with updated notebook and desktop PCs, as well as the firm’s preferred ultrabook branded laptops.
Shark Bay 1 Chipset Goes Pentium
In the universe where Haswell comes as two-chip platform, formally referred to as Shark Bay 2-chip platform by Intel, there will be three mobile chipsets. The HM86 is targeting at mainstream consumers, HM87 targets Premium consumers and SMBs, while the top one QM87 targets the hard working corporate market.
Things get a bit simpler with the Shark Bay 1-chip platform. The value consumer chipset is simply called Baseline, while the next one is simply called Premium. It can’t get any simpler than that. The Shark Bay 1-chip Platform has same I/O, or what we call a chipset, integrated on either Haswell U or Haswell Y processors line.
The Premium chipset supports Windows 8 connected stand by, Intel Active Management Technology 9.0, Intel Small Business Advantage, ACHI and Raid Rapid storage technology, Intel Insider, Intel Anti-Theft Technology, wireless display and three independent displays.
The list goes on with 8 USB ports where two to four can be USB 3.0 ports, up to 6 devices with PCI express 2.0 5GT/s, four SATA ports capable of 6Gbps. The chipset doesn’t have VGA or LVDS as the CPU has the graphics on it, but the Premium chipset has two sensors interface with I2C and UART, 1.5 to 5MB firmware support, Anchor Cover, Platform trust technology and Platform Flash Armoring technology.
Getting away from numbers and naming the chipset simply Premium means that U and Y line of CPUs are meant for tablet and Ultrabook markets, where manufacturers want you to love the product as a whole, not specifics. Premium and Baseline chpisets for Y and U line Haswell processors capable of TDPs as low as 13W are coming in Q3 2013.