Intel On Decline Despite Apple Deal?
Reuters story:
Intel Corp (INTC) (18.01 -0.35)
INTEL CORP. is unlikely to shut plants or slash jobs following a top-to-bottom review announced last month to address shrinking market share and slowing computer sales, a senior executive at the world's biggest chipmaker said on Sunday. "That has not been the expected outcome," Gordon Graylish, Intel's VP and general manager for Europe, the Middle East and Africa, told Reuters. He said Intel Chief Executive Paul Otellini "certainly shared that as well". Otellini said last month that "no stone will remain unturned", raising expectations among analysts that the company, which employs nearly 100,000 people, could cut jobs and overhaul key parts of its business. In an interview in the Red Sea resort of Sharm El-Sheikh, Graylish said the emphasis was on improving the overall efficiency of Intel's operations and that closing factories was a very expensive option. Intel wants to reverse its waning fortunes with an upcoming line of faster and more energy-efficient processors that it expects will close the gap with chips from rival Advanced Micro Devices Inc. (Reuters 12:13 PM ET 05/21/2006
Intel Corp (INTC) (18.01 -0.35)
INTEL CORP. is unlikely to shut plants or slash jobs following a top-to-bottom review announced last month to address shrinking market share and slowing computer sales, a senior executive at the world's biggest chipmaker said on Sunday. "That has not been the expected outcome," Gordon Graylish, Intel's VP and general manager for Europe, the Middle East and Africa, told Reuters. He said Intel Chief Executive Paul Otellini "certainly shared that as well". Otellini said last month that "no stone will remain unturned", raising expectations among analysts that the company, which employs nearly 100,000 people, could cut jobs and overhaul key parts of its business. In an interview in the Red Sea resort of Sharm El-Sheikh, Graylish said the emphasis was on improving the overall efficiency of Intel's operations and that closing factories was a very expensive option. Intel wants to reverse its waning fortunes with an upcoming line of faster and more energy-efficient processors that it expects will close the gap with chips from rival Advanced Micro Devices Inc. (Reuters 12:13 PM ET 05/21/2006
Comments
Originally posted by SpamSandwich
Reuters story:
Intel Corp (INTC) (18.01 -0.35)
INTEL CORP. is unlikely to shut plants or slash jobs following a top-to-bottom review announced last month to address shrinking market share and slowing computer sales, a senior executive at the world's biggest chipmaker said on Sunday. "That has not been the expected outcome," Gordon Graylish, Intel's VP and general manager for Europe, the Middle East and Africa, told Reuters. He said Intel Chief Executive Paul Otellini "certainly shared that as well". Otellini said last month that "no stone will remain unturned", raising expectations among analysts that the company, which employs nearly 100,000 people, could cut jobs and overhaul key parts of its business. In an interview in the Red Sea resort of Sharm El-Sheikh, Graylish said the emphasis was on improving the overall efficiency of Intel's operations and that closing factories was a very expensive option. Intel wants to reverse its waning fortunes with an upcoming line of faster and more energy-efficient processors that it expects will close the gap with chips from rival Advanced Micro Devices Inc. (Reuters 12:13 PM ET 05/21/2006
No doubt that Intel's near term future is riding on core 2 duo chips. If Conroe and Woodcrest come up short then Intel will be in trouble. But I think that Core 2 will be the chip that 'turns the tide' and Intel will begin to regain market share over the next couple of years. We will know soon, Woodcrest in June followed by Conroe in July.
In other words, Intel has tremendous assets. If they perceive a need, they can open up their fab to any of AMD's competitors (AMD is in several markets) and give AMD all sorts of trouble. Yeah, it's fighting dirty, but Intel can fight dirty if they need, and nobody else really can.
There's also Itanium. Seriously. It's going to evolve into the next big thing. If you take a cross section of emerging thought in the industry, it all points to unconventional multi-coring. Cell is the first big step.
Originally posted by Splinemodel
Intel is one of the very few 90nm fabs. I think they're the only 65nm fab, and they'll probably be the first down to 45nm, and there the only ones with 32nm even on the roadmap.
In other words, Intel has tremendous assets. If they perceive a need, they can open up their fab to any of AMD's competitors (AMD is in several markets) and give AMD all sorts of trouble. Yeah, it's fighting dirty, but Intel can fight dirty if they need, and nobody else really can.
There's also Itanium. Seriously. It's going to evolve into the next big thing. If you take a cross section of emerging thought in the industry, it all points to unconventional multi-coring. Cell is the first big step.
Nice points. People are eager to throw dirt on Intel and Dell a bit prematurely. They're going through a bit of a rough patch now but nothing like Apple did 10 years ago. They will make a comeback and people are foolish to think they're finished.