MiniPC, going to disappear completely?

Over the past decade, Intel's NUC (Next Unit of Computing) has gone from a bold vision to a reality. Since its launch in 2012, the NUC has redefined the boundaries of desktop computing with a more flexible stance with its compact design and relatively good performance.

Image source: Intel

Since its inception, NUC has made it a priority to "provide the greatest possible computing power in the smallest possible space". This philosophy is made possible by Intel's own continuous innovation in processor technology, which allows the NUC to deliver performance for everyday use, from light gaming and professional work, to a compact size. Released in 2021, the Beast Canyon NUC is crammed into a full-length dual-slot desktop gaming graphics card in a 20L volume, giving the NUC the ability to compete with high-performance desktop gaming computers.

But in July 2023, the good days of NUC and NUC users came to an end. In the email, Intel confirmed that it would not make further investments in the NUC business unit. For the average consumer, this is the end of the NUC product line. Given that the NUC is also loved by enterprises, Intel said that "this decision" will not affect the Customer Computing Group (CCG) or the Edge Computing (NEX) segment.

Image courtesy of ROG

Subsequently, ASUS also announced that it would take over the sales of the past three generations of NUC products and be responsible for developing future NUC products. According to a press release from ASUS, the brand has established a new division for NUC. Under the ASUS brand, NUC will continue to maintain its two product strategies: "commercial" and "consumer".

Considering the unlimited potential of the AI industry in 2024, small high-performance computing nodes like NUC are likely to usher in a second explosion, and it is indeed a pity that Intel chose to "transfer" the NUC business at this point in time. But considering the relationship between Intel, Core processors, NUC devices, and third-party brands such as ASUS, it seems that the "Wangpu transfer" is what the NUC product line was born in the first place.

Is there a bright future for NUC (better known as MiniPC)?

NUC:MiniPC「样板机」的逆袭

Let's go back to when the 10th Gen NUC was first released: in 2020, the NUC 10 with 10th Gen Core processors hit the markets. At the same time, one of Xiao Lei's old classmates also happened to need to change to a "low-key, highly customizable" computer. After thoroughly evaluating performance, price, size, and maintenance-free, the DIY veteran opted for the Intel NUC 10, which at the time was only known to niche gamers:

The main picture of buying it is simple and "low-profile". I bought the barebones version, which required me to prepare my own memory and hard drive, and after installing it, it was a high-end laptop with no screen and keyboard, and it was inconspicuous in the office.

But interestingly, the features of the NUC High Customization Space are not exactly for this kind of hardware player. Although Intel is the first thing that comes to mind when everyone mentions NUC, Intel's purpose in introducing NUC is not exactly to fight to the death with the Mac mini. Just like blue sky laptops, NUC is not only Intel's "self-operated product" that directly contacts consumers, but also a "model machine" for computer brands such as Dell, Asus, and HP.

Or, in more internet terms, the NUC is actually Intel's "computing solution" to computer brands.

In addition to selling directly to consumers, Intel also sells "NUC solutions" to computer brands, which allow computer brands to configure products according to their own product plans. At that time, there were also many MiniPC products on the market that adopted the NUC solution, such as Dell's OptiPlex Micro, HP's EliteDesk 800G5, and ASUS's Mini PC PN. However, because these products have erased the price advantage of NUC barebones, the market recognition in the domestic consumer field is not high.

Image courtesy of Dell

Considering this background, it is not difficult to understand Intel's decision to "transfer the NUC": initially Intel only wanted to use the NUC to attract cooperative brands and make itself a supplier. However, when NUC became a mainstream product, low profit margins and complex logistics and after-sales service forced Intel to give up its "self-operated NUC" and transfer the thankless NUC to external computer brands, so that it could return to chip suppliers to supply and make money with peace of mind.

However, judging from the situation in recent years, it seems that Intel's "transfer" of the NUC is not only the reason for "not wanting to be self-employed". NUC or MiniPC, beyond the name, the industry seems to be facing a heavier topic – MiniPC seems to have fallen out of favor.

It's not the MiniPC that's falling out of favor, it's the desktop internet

According to the 33rd Statistical Report on the Development of China's Internet Network released by the China Internet Network Information Center (CNNIC), as of June 2014, the number of mobile Internet users in China reached 527 million, surpassing the number of users using desktop computers to access the Internet for the first time.

The "price" of mobile Internet users surpassing computer Internet users is also quite intuitive: mobile phones, iPads, and Android tablets have become the only "computing devices" in the homes of many Chinese Internet users, and more and more young people can only use mobile phones and know nothing about computer operations. On Weibo, the hashtag "#年轻人不会用电脑了#" garnered more than 3.71 million views. Some of the interns who have just left school even refuse to use computers to work, and only use their mobile phones for word processing.

Image source: Weibo

In such an environment of "heavy mobile phones, light computers", the influence of computers itself has begun to decrease. MiniPCs like the NUC are caught between the unflattering market between mobile phones and computers. In terms of ease of use, MiniPC is not as good as mobile phones, and in terms of performance, MiniPC is not as good as desktops. Although the performance of MiniPC is always stronger than that of smartphones, the current user scenarios and application ecology dominated by the mobile Internet determine that users will not choose the "middle" because of the poor performance - they will only try to use mobile phones to solve problems, and if not, they will use tablets and folding screens.

At present, there are not many big brands on the market that are still making MiniPCs. For the average novice user, to buy a MiniPC is either to buy a high-priced, relatively cost-effective product like Apple and Intel, or to choose lightning protection among some niche brands that have not heard of, and the learning cost is inevitably too high. With limited market demand and high learning costs, it is difficult for MiniPC to become a mainstream consumer product.

In other words, smartphones have "wiped out" the low- and mid-range performance MiniPC. But the good news is that high-performance miniPCs have found a breakthrough in gaming.

Mini PCs should use games to keep the present and AI to create the future

In the past two years, more and more brands have abandoned the original compact design of MiniPCs and built MiniPC products in a smaller size than traditional ITX computers. This design allows the MiniPC to use a better thermal design, and also allows the MiniPC to have more performance release space, so that the MiniPC also has the possibility of playing triple-A games.

And games have also become a moat for MiniPCs: unlike light operations that can be performed on mobile phones and computers, such as watching videos on the Internet, most games do not have the possibility of "mobile phone operation comparison card" - because they simply cannot run on mobile phones. Even the very few cross-platform games that span mobile and PC have a much better experience on PC than on mobile. In addition, AI technologies such as DLSS 3 have further improved the "playability" of the MiniPC, improving the competitiveness of the MiniPC from the perspective of MiniPC game performance.

Image courtesy of AYANEO

With the convergence of cloud computing and edge computing, gaming miniPCs can also be used as edge computing nodes in the home, and some processing tasks can be completed quickly locally without having to rely entirely on cloud servers. This not only reduces latency and improves responsiveness, but also enhances data privacy and security.

In short, with the advent of the AI era, high-performance MiniPCs will transcend their original boundaries and become an important computing node in the home intelligence ecosystem. By taking on more AI computing tasks, these devices will bring a smarter and more convenient life experience to home users, while opening up new possibilities for home entertainment and smart living. With the continuous advancement of technology and the continuous expansion of application scenarios, the role of gaming miniPCs in the home in the era of AI will become more and more important.

But for now, the priority of MiniPC is to survive.