Intel Issues Revenue Warning For Q3 2012
Intel released a surprising revenue warning as the company's business is not holding up as initially expected.
The company has cut its forecast by $1.1 billion to a mid-point of $13.2 billion for the third quarter.
Intel said that the cut is due to its customers "reducing inventory in the supply chain versus the normal growth in third-quarter inventory." There is also "softness in the enterprise PC market segment; and slowing emerging market demand" while the "data center business is meeting expectations."
There is plenty of speculation in what these notes mean in detail, but there are now obvious questions about Intel's ability to ramp up 22 nm Ivy Bridge processor production as well as the implications for the launch of Windows 8. Apparently, PC makers are not are increasing their orders for the launch of the new operating system, or they simply use older hardware to support these new systems. There is also a good chance that the tablet business and the competition from ARM processor makers is an increasing problem for Intel.
Either way, Intel has always been an early indicator of trouble for the entire PC industry and that cannot be good news for AMD. We will get the entire story first hand when Intel reports its Q3 results on October 16.
Thank you for saying this, otherwise there'd be another worthless fiery battle of words in the comments section of this article involving many repetitons of the words "AMD", "Intel", "better", and "sucks".
Is your classmate's step-sister showing her titties to other people through her laptop?
Well I guess a billion dollars less is just a minor oversight...
Well I guess a billion dollars less is just a minor oversight...
Thank you for saying this, otherwise there'd be another worthless fiery battle of words in the comments section of this article involving many repetitons of the words "AMD", "Intel", "better", and "sucks".
Is your classmate's step-sister showing her titties to other people through her laptop?
maybe you'd have more customers if you didn't try to milk their wallets so hard
the # of kinds of chips are because they are trying to find ways to sell chips that would otherwise be thrown out, combined with their extreme measures they are taking to push against AMD and ARM in low wattage sectors.
Keep in mind that all of that revenue is before expenses, and a good company tries to always spend a great deal of that expected money (minus a hefty rainy day acct). So think of it more allong the lines of you loosing 7.6% of your pretax income. It still hurts even when the budgets are so large, and it means that something is going to have to get delayed or taken off the table.
Still, it is their own fault. We may not have been expecting that much extra performance out of Ivy Bridge compared to Sandy, but we were expecting a lot more features that really didn't pan out. The largest one being Thunderbolt, but also more SATA3 ports, and more USB3 ports, and to be honest we were expecting a little more than a 5% performance gain even though we knew it was only a refresh. Hopefully Intel will remember with Haswell that they are not in competition with AMD any more, they are in constant competition with themselves. We are (for the most part) OK with the speed of the chips we have, which means that if they do not innovate on features to upgrade to then we will happily stay where we are at.
If AMD had CPUs that performed similarly in most workloads (not just some) and with similar power consumption, they would probably have similar prices too (remember FX's launch prices?). The i7 pricing has little to do with AMD's current position and is more relative to the lower end i3 and i5 price/performance in the workloads that the i7s are intended for, but with a not too significant premium for the extra features and for being the highest performance option for the platform. It's not like the Extreme Editions that are so far overpriced that they're obviously nothing more than bragging rights about your latest money-wasting activity for most people.
Selling systems intended to be pushed out of specification is a recipe for disaster for the OEMs and I doubt that many of them are interested much, if at all, in such a disaster. They'd need to use higher quality motherboards, PSUs, cases, and cooling just to minimize the complaints that they'd receive. They probably wouldn't sell a lot of these systems, they'd be expensive, and even then, chances are that a lot of the buyers would screw something up. If you want a K edition CPU and a Z77 motherboard, then you should buy it yourself or at least use a group that makes custom builds.
Losing $1.1B is a much bigger loss than losing $0.1B.
There are 2 things, profit and revenue. very few companies have a profit margin greater than 10%, so a loss of 1.1B in revenue is 0.11B in profit if your operating expense is 0.90.
intel processors are expensive, so it's reasonable their profits will fall given the situation
The Celeron G530 is a 2.4GHz dual-core SB CPU at ~$50. That's far more than enough performance for the average person and is not expensive in the least for a CPU.