Intel Announces Halt in Development of Next Unit of Compute (NUC) PCs
Intel, the renowned tech giant, has revealed that it will no longer be pursuing further development of its small form factor Next Unit of Compute (NUC) PCs. Instead, the company expects its partners to take over and continue serving the markets currently served by its NUC systems. This decision comes as Intel shifts its focus towards its more profitable chips businesses.
In a statement, Intel stated, “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. 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 the market.”
Intel initially entered the PC business in 2013 with its ultra-compact NUC desktops, coinciding with its exit from the motherboards market. While the company initially targeted the small office/home office (SOHO) market with its NUC barebones and PCs, it later expanded its NUC range to include systems aimed at corporate users and even gaming machines, offering remote management and appropriate support.
Over the years, Intel’s NUC systems have gained significant popularity, competing with similar offerings from established PC brands. Intel’s NUC designs have invigorated the small form factor space, leading to public experimentation in the field. However, Intel’s OEM partners and rivals have not remained idle during this time, and Intel has fallen behind in certain areas. For instance, none of Intel’s NUCs have transitioned to being powered via USB Type-C, a feature already offered by ASUS. Additionally, Intel’s recent enthusiast NUCs have struggled to differentiate themselves from the competition.
Maintaining a wide variety of desktop and laptop platforms has proven to be somewhat taxing for Intel, whose primary focus lies in the semiconductor industry rather than finished devices. While Intel has not provided specific reasons for its decision to halt NUC development, it is likely influenced by the contracting PC market and intense competition among PC OEMs. In recent years, Intel has already reduced its focus on NUCs, not offering Performance versions of its 12th and 13th Generation NUCs.
Intel’s enthusiast-grade Extreme NUCs have also evolved to resemble fully-fledged desktops rather than compact systems, moving away from the NUC’s original small form factor. The success of Intel’s add-in card form-factor used by the NUC Extreme lineup remains uncertain.
As Intel continues to shed and shutter non-core businesses, the discontinuation of the NUC program does not come as a complete surprise. Instead, Intel is urging its OEM/ODM partners, who specialize in designing and selling complete systems, to continue producing and innovating compact machines for the small office/home office market, business clientele, and gamers. This strategic shift allows Intel to refocus on its highly lucrative chip manufacturing business, a priority set by CEO Pat Gelsinger in recent years.
The discontinuation of the NUC program follows Intel’s divestment of other non-core businesses in recent years. The company has left the NAND memory and SSD businesses, axed Optane SSDs, ceased development of notebook models, and even sold its prebuilt server business to MiTAC.
With Intel’s decision to halt NUC development, the future of small form factor PCs will now rely on the innovation and offerings of Intel’s ecosystem partners.
How have other manufacturers achieved success in the small form factor PC market to compete against Intel’s NUC systems?
That other manufacturers have achieved.
Intel’s decision to halt development of NUC PCs may disappoint some fans of the compact and powerful devices. However, the company’s commitment to working with partners and customers to ensure a smooth transition indicates that support for existing NUC products will continue.
The move to shift focus to its more profitable chips businesses is a strategic decision for Intel. The company aims to prioritize areas where it can generate higher profits and maintain a competitive edge in the market.
While Intel’s NUC systems have been successful in the past, the company faces increased competition from other PC brands in the small form factor market. To stay ahead, Intel would need to invest heavily in research and development to incorporate the latest technologies and features into its NUC designs.
Ultimately, Intel’s decision to step back from the NUC business allows its partners to take the lead in innovation and growth in the field. As the ecosystem evolves, it will be interesting to see how Intel’s competitors and partners shape the future of small form factor PCs.
