Intel, the tech giant is backtracking on a big decision it made with its Lunar Lake mobile CPUs. Turns out, baking the system memory right into the chip wasn’t such a hit after all.
Intel’s Lunar Lake Core Ultra 200V laptops came with either 16GB or 32GB of memory built into the processor itself. The idea was to cut down on power consumption—Intel claimed a 40% reduction during memory transfers. Sounds cool, right? But there was a catch. Users couldn’t upgrade the RAM later on. Imagine buying a laptop and being stuck with the same memory forever. Not the best deal for folks who like to keep their tech up to date. Unless you are used to MacBooks.
When asked about sticking with this design during the earnings call, Intel’s CEO Pat Gelsinger said they’re shifting gears. Future chips like Panther Lake and Nova Lake will go back to the traditional RAM sticks. Gelsinger mentioned that Lunar Lake was supposed to be a niche thing but grew bigger because of the whole AI buzz in PCs.
Financial Woes and Blame Game
Intel’s not having the best time financially either. Their Q3 2024 report showed a whopping $16.6 billion net loss. To put that into perspective, that’s roughly about ₹1,378,698 crore! CFO David Zinsner pointed fingers at the integrated memory design, admitting it hit their gross margins hard.
Analysts are predicting that Intel might end up with losses in the billions for the whole of 2024. If that happens, it’d be their first annual net loss since 1986.
Rethinking the GPU Strategy
On top of all that, Intel is re-evaluating its graphics card business. Gelsinger talked about simplifying their product lineup, which could mean fewer options for consumers. He hinted that the market might not need as many dedicated graphics cards in the future.
Intel’s journey with discrete GPUs hasn’t been smooth. They launched the Arc Alchemist series in 2022, but delays put them behind NVIDIA and AMD. They grabbed a tiny slice of the market, but that seems to have vanished by late 2024.
What’s Next for Intel’s GPUs?
Despite the setbacks, Intel’s next-gen GPUs, the Arc Battlemage, are still slated for release in late 2024. There’s buzz that they might even beat NVIDIA and AMD to the punch in early 2025. But with performance details under wraps, it’s anyone’s guess how they’ll fare. The success or failure of Battlemage could seal the fate of the planned Arc Celestial lineup.
It’s a bit of a rollercoaster for Intel right now. They’re making big changes in response to both market feedback and financial pressures. As someone who loves tinkering with hardware, I’m glad they’re bringing back upgradeable RAM. But the potential downsizing of their GPU efforts is a bit concerning. Only time will tell how these moves will play out.
