“The PC industry has been screwed by Intel,” said Penn, “Intel gets $100 per square inch for its silicon while the industry average is $9. Intel gets 11x what the rest of the industry gets.”
“It’s little wonder that PCs have been dethroned – except to Intel and Microsoft,” added Penn.
Penn pointed out that the enterprise community wants Windows XP. “XP’s stable and it works and people don’t want to learn new icons,” said Penn.
The PC industry is now shrinking. 350m units in 2012, 340 in 13, 325 in 14, 315 in 15 and 310 in 16, whereas tablet units are growing – 125m units in 2012, 180m in 12, 230 in 14, 270 in 15 and 300 in 16.
“Surface has been a complete bloody disaster,” added Penn, ‘Windows RT is totally useless. Will Windows Surface Pro really run Windows 8 and Office?” If so it has a chance.
Intel’s attempts on the mobile market have failed for engineering reasons. “They do not have a power effective process to build the right chips on,” he said, adding that this may, of course, change at 14nm.
But Penn asked: “Has Intel’s fixation on x86 cost it the mobile market?”