Intel's interim co-CEO Michelle Johnston Holthaus revealed that retailers are experiencing substantial return rates for Qualcomm-powered PCs, citing compatibility issues as the main concern. Speaking at the Barclays 22nd Annual Global Technology Conference, she noted that consumers are finding basic functionalities don't work as expected on these systems.
The current market share for Qualcomm Snapdragon X Elite-powered machines sits at just 0.8% of the PC market in Q3, while Arm-based PCs overall command roughly 10% - dominated by Apple's M-series processors.
Despite these challenges, Qualcomm maintains an optimistic outlook, predicting that Arm-based processors will power about 50% of client PCs in the coming years. However, current systems face obstacles including software compatibility problems and lower gaming performance compared to traditional x86 offerings.
Johnston Holthaus acknowledged upcoming changes in the competitive landscape, hinting at new market entries in 2025. Industry speculation suggests MediaTek and Nvidia may join the Windows PC market with Arm-based system-on-chips, presenting Intel with stronger competition than it faced in previous decades.
Intel appears prepared for this shifting market dynamic, emphasizing recent improvements in their product lineup. "We made a massive leap with our Lunar Lake product last year," Johnston Holthaus stated, claiming their latest offerings match Arm devices in performance and battery life.
The company maintains confidence in its position, pointing to its established manufacturing capabilities and long-standing relationships with PC makers. According to Johnston Holthaus, many customers are recommitting to x86 architecture after seeing Intel's recent technological advances.
As the PC processor market prepares for new entrants in 2025, Intel's strategy focuses on maintaining its market position through manufacturing strength and continued innovation in power efficiency and performance.