Intel gives sharp warning on revenue

[KeithTalent]

from Yahoo Finance via AP:

Intel Gives Sharp Warning on Revenue

The $400 million reduction at the lower end of its forecast was one of the sharpest warnings from the company since 2001, when the whole tech industry was sinking into recession. This time, Intel's troubles have so far not been shared by other chip or computer makers.

Intel also is facing steep competition from its smaller rival Advanced Micro Devices Inc., which has made inroads with processors for servers as well as PC chips that outperform Intel's offerings. In previous reports, Intel also has cited a shortage of chipsets, which serve as the central nervous system for computers, as a reason for its customers turning to AMD.

However:

"Intel usually had a quarter or two lead over the rest of the sector, so i think it might take a quarter or so before the rest of the guys see weakness," he said. "I do expect that -- probably by the June quarter."

We will just have to wait and see if this holds true.

 

[zephyrprime]

Moores law has slowed down in recent years. The useful lifetime of computers in a business environment has increased from ~3years to ~5years. This has of course reduced sales. AMD is also taking away share from them as well.

 

[StrangerGuy]

$400 million is peanuts for a firm like Intel.

 

[WaTaGuMp]

Originally posted by: StrangerGuy
$400 million is peanuts for a firm like Intel.

Tell that to the shareholders lol.

 

[Furen]

Originally posted by: zephyrprime
Moores law has slowed down in recent years. The useful lifetime of computers in a business environment has increased from ~3years to ~5years. This has of course reduced sales. AMD is also taking away share from them as well.

Moore's law hasn't slowed down at all. We're about to see a doubling of the amount of transistors in chips yet again with the released of quad-core CPUs. As long as process improvements allow manufacturers to basically double the amount of transistors each time there's a shrink, we'll be seeing bigger caches and more cores (or perhaps something that actually is useful, lol) being thrown into the CPUs in order to make them more attractive to would-be purchasers. Performance improvement HAVE slowed down, however, and I'm pretty sure we'll see a slow-down of the market unless software (aka Vista) requires people to actually use the stuff being thrown into today's chips.