It was my impression the NUC sold by Intel was always meant to be a proof of concept for the NUC-class device to inspire third parties to make them. Intel getting out of the market now that it's proven sort of makes sense.
Losing this outlet for them is a loss for Intel to bring new considerations to their platform beyond just chips. Again, if Intel was looking at NUC as a profit center, surely it was smart to shut it down. But I highly doubt the NUC line was a significant revenue generator to begin with. Because that wasn't the real value add for Intel. It got people talking about Intel and using it. That is one of the greatest forms of marketing for a chip manufacturer.
None of these players are interested in budget systems either, which is where my attraction to NUC platform was, Celeron. None of the big players touch Celeron, they only make I3, I5, and I7 systems, all in excess of $600 ea.
I can get a Celeron intel NUC fully equipment with a Windows Lic for less than 1/2 that that is perfectly suited for Line of Business Applications, Kiosk Machines, or other Low I/O, Low Memory single Application workloads.
Things that could run on PI or other ARM SBC if not for the application stack requirement of Win32 API and the management integration of Windows (Active Directory, Intune, ConfigMgr) etc.
I see alot of comments on here about how Great the NUC linux compatibility is. Ironically the Main Reason I use Intel NUC platform in a commercial setting is because of its Windows Compatibility, something alot of the low cost, tiny form factor, SBC platforms (like Odriod, rPI, etc) lack. I require Windows for my environment unfortunately .
I wonder how this impacts emerging markets for Intel. If they've got no outlets to test their own product uptake and get people excited about the brand I feel like that's a missed opportunity and the cost of doing business. I saw a lot of NUC devices in data centers in the VMware hayday because they were so widely popular on TinkerTry and Virtually Gheto (i.e. William Lam) at the time.
I saw security vendors copy that play making SFF firewalls to incent stakeholders to run at home that turned into 7-figure deals over the long term.
I don't think Gelsinger is doing a lot of good for Intel. You didn't need him to cut costs. He's had plenty of time behind the wheel at this point, Intel should be on a more interesting trajectory by now.