Breaking News
News & Analysis

Intel Results Continue to Slide

7/18/2013 12:55 PM EDT
35 comments
NO RATINGS
More Related Links
View Comments: Newest First | Oldest First | Threaded View
<<   <   Page 2 / 4   >   >>
DMcCunney
User Rank
CEO
Re: zero sum game
DMcCunney   7/20/2013 9:50:50 AM
NO RATINGS
Virtualization certanly is one of the biggest contributors to the fall of sales.

And one going on for some time. Folks running servers want to drop costs, and everyone is realizing server utilizationcould be improved.  If you can make better use of the servers youhave, you don't need to buy new ones as often.  And the more servers ou have, the higher your power bills, and data center power costs are an increasingly large factor.


Gaming is used to being one of the driving force of an upgrade.

But Intel gets benefit from that only as a side-effect.  For high-end gamers, the video card is for more important than the CPU, and Intel has never neen a leader in that area.  Intel's graphics have historically been poor.


In the meantime, what will Intel do?

What it's doing - hunker down, cut expenses, and wait for a recovery in the market.


DMcCunney
User Rank
CEO
Re: zero sum game
DMcCunney   7/20/2013 9:40:11 AM
NO RATINGS
I was surprised by the drop in the capex forecast.

I'm not.  This has been happening as long as I've been paying attention.  Intel (and other capital intensive outfits) drop capex when there is a drop in sales/revenue/profit.  Capex is an expense, and when your numbers are off you look to cut expenses.  When things improve, you boost them again.


We don't know what Intel's priorities are, so we can't know precisely which projects are affected, but I suspect Intel has a methodology for determining what efforts get reduced/dropped when they feel they need to make cuts.

 

Peter Clarke
User Rank
Blogger
Re: zero sum game
Peter Clarke   7/20/2013 5:39:50 AM
NO RATINGS
Better to just have separate data for entry-level phones, feature phones, smartphones, tablet computers and notebook computers.

Then individusals can read and interpret the data; adding groups together as it makes sense to them.

Peter Clarke
User Rank
Blogger
Re: zero sum game
Peter Clarke   7/20/2013 5:29:35 AM
NO RATINGS
On the other hand it is quite reasonable and meaningful to divide the sectors.

One is dominated by Wintel and seems to be on the retreat. 

 

The mobile device sector is more open although Apple, Google, Android, ARM, Linux, Samsung, Qualcomm and more besides are prominent and successful there 

mcgrathdylan
User Rank
Blogger
Re: Intel's choice
mcgrathdylan   7/19/2013 6:56:21 PM
NO RATINGS
OK, good point. Atom hasn't caught up to ARM, and you would have to chalk that up to design. You are correct.

chipmonk0
User Rank
CEO
Re: Intel's choice
chipmonk0   7/19/2013 6:53:53 PM
NO RATINGS
has n't that been very clear for 3 or 4 years now ? why else aren't Atoms selling against ARM ?

mcgrathdylan
User Rank
Blogger
Re: Intel's choice
mcgrathdylan   7/19/2013 6:32:09 PM
NO RATINGS
You really think Intel has fallen behind on its design? I thought the choice of Krzanich was the safe choice. And no matter what, Intel needs to protect its process technology crown jewel.

mcgrathdylan
User Rank
Blogger
Re: Intel Guidance
mcgrathdylan   7/19/2013 6:29:22 PM
NO RATINGS
Wow, that's a scary thought Bill. When you put it that way, it does seem awfully optimistic. I hope Intel is not setting itself up for the dreaded "earnings miss."

mcgrathdylan
User Rank
Blogger
Re: Not much sympathy
mcgrathdylan   7/19/2013 6:22:03 PM
NO RATINGS
Great point Daleste. It's funny how the market works sometimes. Intel's stock price took a hit after this. They made $2 billion. That's not chump change.

mcgrathdylan
User Rank
Blogger
Re: zero sum game
mcgrathdylan   7/19/2013 6:20:07 PM
NO RATINGS
Come to think of it, it might actually make more sense to lump tablets in with traditional PCs in terms of forecasting. Obviously, PCs tend to cost more (though not that much in some cases- I know you can get a laptop for less money than a top of the line iPad). But PC margins are razor thin. I'm sure tablet margins are too. I would think the semiconductor content is similar, right?

<<   <   Page 2 / 4   >   >>
Flash Poll
Radio
LATEST ARCHIVED BROADCAST
EE Times editor Junko Yoshida grills two executives --Rick Walker, senior product marketing manager for IoT and home automation for CSR, and Jim Reich, CTO and co-founder at Palatehome.
Like Us on Facebook

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Times on Twitter
EE Times Twitter Feed
Top Comments of the Week