PCs may get more expensive as Intel Inside program gets 40-60% cut

Word is going around that Intel is making major changes to its iconic "Intel Inside" program. This program has been in operation for 26 years and provides funding for channel partners and OEMs to market and distribute products with Intel processors.

CRN heard from its sources that Intel plans to cut the program by 40 to 60 percent. Intel has earmarked some of the funds to accelerate growth of its higher-margin datacenter division, but will also keep some of it in-house to boost its profit.

"We're hearing that major cuts are coming throughout Intel's marketing and channel programs," said a top executive for a major Intel partner, who has been informed of the cuts. "The marketing funds have been moved to other groups within Intel that aren’t channel-specific or PC-centric. The funds will now go towards driving the business in data center, giving more to the data side of the house instead of compute. A lot of dollars are moving to other areas or kept in house to improve Intel’s profit and margins."

Intel confirmed to CRN changes to the "Intel Inside" program but did not specify or confirm the amount of the cuts at this time.

The site says OEMs are expected to see cuts in the 40 to 60 percent range, while builders of enthusiast gaming systems will see a reduction of up to 20 percent. The move will reverberate through the industry as it will have a noticeable impact on the financials of Intel's partners. The result will probably be a cutback in marketing initiatives and/or higher PC prices.