Intel's interim co-CEO Michelle Johnston Holthaus made significant statements at the Barclay's Global Technology Conference yesterday. She shed light on Qualcomm PCs and the growth of the Arm ecosystem. According to her, a considerable portion of Qualcomm PCs are being returned by customers, and retailers are highly concerned about this issue. This has become any retailer's "number one concern." However, there is limited available data regarding Qualcomm's return rates this year, making it challenging to verify these claims. The assumed reason for returns is compatibility issues with Windows on Arm, which is less of a concern today compared to the past.

Intel's Insights on Qualcomm PCs and Arm Ecosystem

Qualcomm PC Returns and Retailer Concerns

Intel's interim co-CEO Michelle Johnston Holthaus revealed that a large percentage of Qualcomm PCs are being returned by customers. Retailers are deeply worried about this trend as it poses a significant challenge. While there is a lack of specific data on Qualcomm's return rates this year, the assumption is that compatibility issues with Windows on Arm are the main reason. In the past, this was a more prominent concern, but today it seems to have less impact. Despite the relatively low sales of Qualcomm PCs, the return rate is causing alarm among retailers. This situation highlights the need for better compatibility and improved product quality.There are several factors that could contribute to the high return rate of Qualcomm PCs. One possible reason is the lack of awareness among consumers about the capabilities and limitations of these devices. Another factor could be the initial excitement about Arm-based PCs, which may have led to some customers making hasty purchases. Additionally, the transition from x86 to Arm architecture may not have been seamless for all users, resulting in compatibility issues. Retailers are now facing the challenge of managing these returns and dealing with dissatisfied customers. They need to find ways to address these issues and ensure that Qualcomm PCs meet the expectations of consumers.

Qualcomm's Market Share and Growth

According to Canalys, Qualcomm sold 720,000 PCs during the third quarter, achieving a market share of around 0.8%. This represents significant growth for the company, but it is still a relatively small number. In practical terms, it seems unlikely that retailers would be overly concerned about the return rate of a product with such low sales. However, the potential for growth is there, and Qualcomm needs to address the issues related to returns and compatibility to capitalize on this opportunity.The growth of Qualcomm in the PC market is a testament to the increasing popularity of Arm-based architectures. While Intel still dominates the market, Qualcomm is making significant inroads. The company needs to continue to invest in research and development to improve the performance and compatibility of its products. It also needs to build stronger relationships with retailers and consumers to overcome the challenges associated with the transition to Arm.

Intel's Perspective and Future Competitors

Intel believes that "x86 is the best overall basic architecture" and has many customers who trust x86 and Intel's future. The co-CEO's apparent desire to put the Arm movement in its place could be a reaction to recent comments from TSMC founder Morris Chang. Chang mentioned that Intel has no strategy and no CEO and has likely made a big mistake by not focusing on AI processors. Given TSMC's partnerships with companies like Nvidia, Apple, and Qualcomm, Johnston Holthaus may have wanted to remind them all that Intel is still the leader in the market.In addition to the harsh comments on Qualcomm, the co-CEO also talked about how "competition makes us better" and pushes constant innovation and improvement. She alluded to the fact that there will be more competitors entering the marketplace in 2025. This indicates that Intel is aware of the competitive landscape and is prepared to face the challenges ahead. The company needs to continue to innovate and improve its products to stay ahead of the competition. It also needs to build stronger partnerships and collaborations to expand its market reach.