Intel May See Red in Q1, First Time in 87 Quarter FYs

btarunr · Jan 21, 2009

Microprocessor mogul Intel, has been fairly invincible to the ups and downs of world economy, in its 40+ years of existence, owing to the market position it has been holding since the success of its microprocessor technologies. For the first time in 87 quarter fiscal years, the company is bracing itself for a red-quarter, meaning losses.

Intel's CEO Paul Otellini thinks that with the company seeing profits go down by as much as 19% in Q4 2008, one can expect only the worse of Q1, with an ailing world economy coupled with the expected fall in sales post the winter shopping season. The company is exercising all means to cut operational costs while attempting to meet sales targets, though it is not looking at workforce reductions as an option just as yet.

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Weer · Jan 21, 2009

How does that make sense? They have no competition.

ShadowFold · Jan 21, 2009

Weer said:
How does that make sense? They have no competition.

In the mid end and low end markets they do. Just because they hold the fastest CPU's doesn't mean AMD doesn't compete with their cheaper ones.

btarunr · Jan 21, 2009

Weer said:
How does that make sense? They have no competition.

It makes sense for its investors, who will simply pull their monies out of INTC and put them in slightly safer companies (assuming there are).

Mega-Japan · Jan 21, 2009

Weer said:
How does that make sense? They have no competition.

Just because they hold the fastest chip, doesn't mean it sells like hot cakes. I mean, look at the PlayStation3, lol.

Anyways, I wonder if AMD can take advantage of this, but if they do, w00t for them.

PaulieG · Jan 21, 2009

Weer said:
How does that make sense? They have no competition.

You're kidding right? They do have competition. They just don't have competition on the very high end of the market, which represents a very small portion of the market.

evil_raptor · Jan 21, 2009

Mega-Japan said:
Just because they hold the fastest chip, doesn't mean it sells like hot cakes. I mean, look at the PlayStation3, lol.

Anyways, I wonder if AMD can take advantage of this, but if they do, w00t for them.

AMD is also loosing money like Intel

Mega-Japan · Jan 21, 2009

Well I suppose, but AMD has been losing money for a long time now, maybe they could step up a bit now? Even if by a little? >_>

evil_raptor · Jan 21, 2009

Mega-Japan said:
Well I suppose, but AMD has been losing money for a long time now, maybe they could step up a bit now? Even if by a little? >_>

agreed

ThomasDM · Jan 21, 2009

Weer said:
How does that make sense? They have no competition.

It's because demand is dropping very hard. There's a risk that their costs will be higher than what they're able to sell this quarter.

Mega-Japan said:
Anyways, I wonder if AMD can take advantage of this, but if they do, w00t for them.

I wouldn't count on it, the first quarter will be another terrible quarter for AMD.

Weer · Jan 21, 2009

Paulieg said:
You're kidding right? They do have competition. They just don't have competition on the very high end of the market, which represents a very small portion of the market.

No, I'm not kidding. I don't see AMD as a viable CPU manufacturer on any level. In the lower ends, nVidia has the Dual-core Pentiums, the Celerons, even the new cheap Quads.. what does AMD have? Intel isn't stupid.. they're here to make money, not be the performance leader alone. They make money because they have the best hardware for the money on all fronts, and I know this personally, having bought so many Intel CPU's for all ranges of computer systems.

You can't tell me that after all the trash talk Intel fan-boys dish out about AMD being "dead", they're actually doing BETTER than Intel financially. That is insane.

devguy · Jan 21, 2009

Weer said:
No, I'm not kidding. I don't see AMD as a viable CPU manufacturer on any level. In the lower ends, nVidia has the Dual-core Pentiums, the Celerons, even the new cheap Quads.. what does AMD have?

Intel? And I've heard that the same people who think that a 1.5GB 9600gso is better than a 512mb 4870 think that a Phenom X3 is better than a Core 2 duo (which is actually a big part of the market).

erocker · Jan 21, 2009

What corporation isn't bleeding money right now? I don't think this has to do with competition at all. People are broke, fearful and reluctant. Just another rung on the ladder.

*KEEP ON TOPIC

kysg · Jan 21, 2009

devguy said:
Intel? And I've heard that the same people who think that a 1.5GB 9600gso is better than a 512mb 4870 think that a Phenom X3 is better than a Core 2 duo (which is actually a big part of the market).

Actually this is half right, 9600GSO doesn't hold a candle to the 4870 I really doubt this.

a phenom X3 on the other hand can at stock speeds even contend with a e8400. It's when Ocing x3 loses a lot of ground. At the stock speeds the X3 is very dependable.

niko084 · Jan 21, 2009

Weer said:
How does that make sense? They have no competition.

It makes perfect sense, they build some of the worst chips and the fastest... They went too broad with too much middle line if you ask me.. The I7 is great, but a huge mistake IMO, DDR3 is expensive and isn't taking over, the boards are expensive, and they don't perform "That much better than the previous quads" Business isn't using them, they don't have a Xeon counterpart, its a big piece of their line with such a small market for them.

They over produced a lot of the core2's and now they can't even sell them without taking a fairly good hit, and at the same point that will just hurt their newer lower end chips market.

They made a lot of cool great stuff pretty quick and moved a ways, but it's going to cost them...

Honestly I think they are really trying to stay ahead of AMD, if they didn't release the I7, the Phenom II's would have a stronger market. AMD is creeping back at them and Intel knows it.

Bundy · Jan 21, 2009

erocker said:
What corporation isn't bleeding money right now? I don't think this has to do with competition at all. People are broke, fearful and reluctant. Just another rung on the ladder.

*KEEP ON TOPIC

I agree, it is sudden changes in the market that causes problems for big corporations, they can't change course quick enough. Most companies can make profits with predictable markets and most struggle when they get their forward projections wrong.

LittleLizard · Jan 22, 2009

imo, the world is going to hell and all companies are going too

PCpraiser100 · Jan 22, 2009

I guess its because of the AMD Phenom 2s, since they out-value the quads from into when it comes to basic needs. Glad I got my i7 now though :toast:

7mm · Jan 22, 2009

PCpraiser100 said:
I guess its because of the AMD Phenom 2s, since they out-value the quads from into when it comes to basic needs. Glad I got my i7 now though

I agree here . Also, it's the crashed market that stops people to invest in newer & more expensive products that quickly .

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Intel May See Red in Q1, First Time in 87 Quarter FYs

btarunr

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