Intel exits PC business as it stops investing into its NUC unit
Intel has announced its plans to cease "direct investment" of its Next Unit of Compute (NUC) business. The company however wants its partners to continue offering compact desktops to interested parties. Intel currently offers three types of NUC systems - compact PCs aimed at consumers and home offices, business and corporate-oriented machines, and high-performance machines designed for gamers.
"We have decided to stop direct investment in the Next Unit of Compute (NUC) Business and pivot our strategy to enable our ecosystem partners to continue NUC innovation and growth," a statement by Intel reads. "This decision will not impact the remainder of Intel’s Client Computing Group (CCG) or Network and Edge Computing (NEX) businesses. Furthermore, we are working with our partners and customers to ensure a smooth transition and fulfillment of all our current commitments – including ongoing support for NUC products currently in market."
Intel's own NUCs have been popular systems and have competed against similar machines from traditional PC brands. But supporting a broad range of desktops and laptops is seen as a burden for Intel, which is primarily a chip company. Furthermore, profitability of NUC business probably suffered in the recent quarters, given shrinking PC market and cut-throat competition.
The company wants its partners to continue making compact machines for SOHO market, business users, and enthusiasts while it concentrates on highly profitable chip production.
Under the leadership of its new CEO, Pat Gelsinger, Intel has decided to pull out of several ventures, such as the 3D NAND memory and SSD sector, the Optane SSD division, the notebook modem operations, the Barefoot switching business, and most recently servers. These moves by Intel are parts of a larger effort to concentrate more intensively on a number of core businesses and, ideally, to increase profitability.
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