Intel profit sinks 90%

Intel profit sinks 90%

money.cnn.com

Intel Corp. reported a 90% drop in fourth-quarter earnings Thursday that were in line with Wall Street's reduced expectations, as demand for semiconductors remains weak.

The Santa Clara, Calif.-based company reported net income of $234 million, or 4 cents per share, for the three months ended Dec. 27. That's down from earnings of $2.27 billion, or 38 cents per share, in the year-earlier period.

Sales in the quarter fell 23% to $8.2 billion from $10.7 billion a year ago.

(visit the link for the full news article)

Intel is the top computer processor manufacturer in today's market. If Intel fails, expect MAJOR trouble. Intel and AMD are the only mainstream manufactures. If Intel crashes they will take computer companies with them.

In my personal opinion, having extensive computer knowledge, would ESTIMATE that Intel processors make up about 55% of computer processors, and AMD making up about 43%

money.cnn.com
(visit the link for the full news article)

Wow, AMD must be gaining lead then huh buddy.

Although they're both about even with processing rates, dual cores(64bit) etc.......


Hmm.

And alas, I have doubleposted.

Great power to me.

[edit on 16-1-2009 by Revolution-2012]

Pfft...who cares, let's all buy, buy, buy some stock tomorrow. This just makes me want to buy more stock...sic.

Originally posted by Revolution-2012
Wow, AMD must be gaining lead then huh buddy.

Although they're both about even with processing rates, dual cores(64bit) etc.......


Hmm.

Intel has always led slightly in price/performance ratio.

Intels latest I7's were ground breaking. To see them go down this hard this quick is going to be tough. Assuming Intel crashes, AMD will take the lead no question.

Think of it this way, there aren't 10+ corporations like car manufacturers, there are two. If one fails it will really effect things. Major computer companies like Dell use only Intel.

[edit on 16-1-2009 by hardcoremusiclover]

Dell, Gateway, HP, the list goes on.


Maybe they'll bail out! Heh, wouldn't surpise me, leaving the rest of the OEMs in anarchy.

For anyone knowledged in computer, building your own is cheaper and more efficient. =P

Intel inside... the poorhouse.

I'm betting they really wish they'd diversified a little bit more before this crisis hit. Imagine how secure their profit margins would be right now if they'd simply added a department that designs/manufactures tiny microchips that can be carefully implanted inside living tissue with a syringe.

reply to post by burdman30ott6


Who's to say they didn't? Letting their stocks look like they're drained could be nothing but a ploy.

As far as Intel is concerned I'd say buy when they are low, I don't often give money advice (cos I'm always broke) but I can't see Intel going down anytime soon.

I wonder if there is a paradigm shift in processor tech in the pipe line?? that would be interesting.

Well, my first computer was 4.77-8 mhz in the 80's and every computer I bought/built since was leaps faster - so I kept buying so I could run the latest software. That's no longer true unless you're a bleeding edge gamer or developer who wants a higher resolution with a bit more frame rates, but even then you change graphic cards more than CPU's & mobo's.

I've been in the computer industry since 89' and have always had close to the latest & greatest - when it made a difference. Though notebooks don't last me long since traveling is hard on them - my last is still two years old and my desktop is nearly 5 years old and not noticeably any slower than the latest stuff - so I'll replace it when it begins to die from too many power outages etc. Keep em cool and clean with good power & they'll last 7 years+.

That's really the problem for Intel and even Microsoft - If people like XP on their computer & their current version of Office - why would they want to pay them more money for a replacement? People are keeping them longer just like their cars when they don't have extra money to spend.

Computers are here to stay - so, somebody will be around to make the cpu's. I started out a strictly Intel man because they were the best, but I turned to AMD when they became the best bang for the buck about the time Intel made the first Pentium.

Intel business model expected to continue selling everyone new CPU's every three years, but it's not happening anymore.

Unless your holding Intel stock or you work there - I wouldn't worry much they're just top heavy like allot of other companies that need to get back to reality.

[edit on 16-1-2009 by verylowfrequency]

Originally posted by Revolution-2012
Dell, Gateway, HP, the list goes on.


Maybe they'll bail out! Heh, wouldn't surpise me, leaving the rest of the OEMs in anarchy.

For anyone knowledged in computer, building your own is cheaper and more efficient. =P

HP, uses AMD.

2nd ftw

Originally posted by hardcoremusiclover


HP, uses AMD.

2nd ftw

'

HP uses Intel as well. they sell computers with both chips.

Everyone raves about AMD, and I admit, I have not yet gotten my hands on a AMD chipset with the Hyper transport tech. but I have had some crummy experiences with AMD. I had their Duron and it burned out in a month. I understand their architecture has improved drastically, but Im still skeptical. Still want to try the new ones though.

[edit on 16-1-2009 by NightoftheComet]

I my self power my HP laptop by AMD. I am not found of Intel. But this may bring in an opening for other companies to enter the market. But I wonder if Intel is "too big to fail" like GM, Ford and Chrysler. I would think they would be a better company and more important to life than the "Big 3". Lets bail them out too.

Granted Intel and AMD are the big guys out there, but there are many others out there who build CPU's on the same architectures.

There are literally dozens.


Outside of the PC categories, remember that CPU's are in just about everything we use now.
In the mobile electronics and integrated applications fields, Texas Instruments, SIS, ST, Sony, Motorola, and many others hold control over that sector.


We won't be seeing the end of computer technology, lol, far from it, someone else will simply jump in to take their place if they fall.

They're the largest, so they get hit the hardest.

At least they made a profit. In a recession any profit should be seen as success. Once they start posting losses rather then profits for a few quarters I will consider them to be in trouble. I had a quick look at their balance sheet and I think they are in a good position to survive the downturn, even if they started posting losses at some point. Compared to a lot of other companies they don't have much debt exposure and they are certainly doing better then AMD who posted losses of $3.3 billion in 2007, even before the market really soured.

[edit on 16-1-2009 by Jacob08]

Keep in mind that Intel has billions in the bank and they still turned an actual profit. AMD on the other hand has been hemorrhaging money every quarter for the last few years.

Yes, this is a terrible quarter from Intel but they have a ways to go before they would need any bail out money.

Originally posted by Jacob08
At least they made a profit. In a recession any profit should be seen as success. Once they start posting losses rather then profits for a few quarters I will consider them to be in trouble. I had a quick look at their balance sheet and I think they are in a good position to survive the downturn, even if they started posting losses at some point. Compared to a lot of other companies they don't have much debt exposure and they are certainly doing better then AMD who posted losses of $3.3 billion in 2007, even before the market really soured.

[edit on 16-1-2009 by Jacob08]

Exactly. With the shape the economy is in any profit is a success. If anything now would be a good time to buy some Intel stock, you know computers aren't going to disappear they have become a necessary element in practically everyone's life.