Can shrinking Intel survive just by cutting jobs across the globe? - the challenge lies in selling in Asia
Babu Ghanta
Sep. 6, 2006

Intel announced global that its workforce of 102,500, as of June 30, would be cut by 10,500 to 92,000 by the middle of 2007.

Job cuts are easy. It is a pain killer for the top corporate management. But just the pain killer may not solve the problem of cancer.

Intel's problems lie in Asia. As Asia, especially India and China grow immensely, Intel has to match up with the low cost processors where the Asian demand lies.

The challnge for Intel is not in cutting cost but in catering the low cost microprocessor market. For example an average Indian can afford a Rs. 3000 PC. They all will love to have the same. But that translates to a $70 PC with monitor. It is not easy for Intel to cater to that market.

The biggest problem and challenges come from Lenovo, other Indian and Chinese PC manufacturers. As these companies face artificial stagnation because of Intel's inabilities to supply real low cost processors, they will innovate themselves.

Can shrinking Intel survive just by cutting jobs across the globe? - the challenge lies in selling in Asia
Babu Ghanta
Asia is where Intel will do or die. Just job cuts will not do it.
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