Intel Q2 Financials- revenue down, profit down, datacenter up

ShintaiDK · Jul 17, 2015

Just a rough calculation, since VIA reports in TWD. But without the consoles, AMD is currently only ~6x bigger than VIA.

Fjodor2001 · Jul 17, 2015

Phynaz said:
Edit:
I was wrong

As usual. Nice of you to admit it for once.

Phynaz said:
Have you enrolled in that Finance 101 course we were talking about?

Maybe you should consider it yourself?

Phynaz · Jul 17, 2015

mrmt said:
IIRC AMD server market share broke the barrier of single digits a few quarters ago. They are now in the single decimals.

OMG, you're right. They were at 2% back in January. I can't find a current number.

MiddleOfTheRoad · Jul 17, 2015

TeknoBug said:
It's funny how "PC gaming is increasing" yet PC sales and parts in general are dropping, probably due to the lack of need to upgrade- the difference from Sandy Bridge to Broadwell isn't that big and AMD basically hasn't put out anything worth giving a rat's ass about in 4 years.

That is exactly the problem. Steam is exploding with now 125 million users. The amount of users for PC gaming is very impressive.... But the hardware just isn't moving the needle, so people are milking 3 - 5 year old components.

If there was compelling new hardware -- perhaps desktop sales would rebound.

dark zero · Jul 17, 2015

ShintaiDK said:
Just a rough calculation, since VIA reports in TWD. But without the consoles, AMD is currently only ~6x bigger than VIA.

And VÍA has no debt.. And is entering on green numbers again. Thanks to The Chinese

Fjodor2001 · Jul 18, 2015

ShintaiDK said:
Just a rough calculation, since VIA reports in TWD. But without the consoles, AMD is currently only ~6x bigger than VIA.

"only" 6 times bigger. Why the "only"...? And why neglect the consoles?

How big is Intel if you neglect their CPUs?

roob · Jul 18, 2015

Fjodor2001 said:
No, per year.

http://online.barrons.com/articles/amazon-reveals-just-how-profitable-the-cloud-can-be-1429932877

And it's revenue, not profit.

So quite a lot, but not that impressive. Less in profit per year than Intel loses in mobile in 2 months alone...

that's funny, because that's still more profit than amd made in 5 years.

Fjodor2001 · Jul 18, 2015

roob said:
that's funny, because that's still more profit than amd made in 5 years.

How is that funny? The size of the companies are not comparable at all and Intel is in many more markets than AMD.

Walmart makes extremely much more money that your local corner shop. I guess that must be even more brutally funny.

roob · Jul 18, 2015

Fjodor2001 said:
How is that funny? The size of the companies are not comparable at all and Intel is in many more markets than AMD.

Walmart makes extremely much more money that your local corner shop. I guess that must be even more brutally funny.

what's the matter, you were that one with the useless comparison.

Fjodor2001 · Jul 18, 2015

roob said:
what's the matter, you were that one with the useless comparison.

What comparison?

roob · Jul 18, 2015

Fjodor2001 said:
What comparison?

comparing AWS with INTC mobile income.

So quite a lot, but not that impressive. Less in profit per year than Intel loses in mobile in 2 months alone...

dark zero · Jul 18, 2015

Intel loses more money in mobile than AMD debt

CHADBOGA · Jul 19, 2015

dark zero said:
Intel loses more money in mobile than AMD debt

When do you see Intel going bankrupt?

dark zero · Jul 19, 2015

CHADBOGA said:
When do you see Intel going bankrupt?

Did I say that? I said only that Intel loses too much in mobile enough to pay 2 times the debt of AMD.

erunion · Jul 19, 2015

Phynaz said:
Some quick back of the napkin math.

Intel client sales $7.5B
AMD client sales $0.37B
================

Total Market $7.87B

7.50/7.87*100 = 95% market share for Intel.

Wow!

Their GPU market share is heading the same direction. Q1'15 reports put AMD at 24% market share in discrete GPUs. They were at 38% in Q2'14.

ShintaiDK · Jul 19, 2015

erunion said:
Wow!

Their GPU market share is heading the same direction. Q1'15 reports put AMD at 24% market share in discrete GPUs. They were at 38% in Q2'14.

It was 22.5% in Q1 and 35% in Q1 2014.

A rough estimate puts AMDs x86 marketshare around 2% if you include servers (3% if you exclude) and GPU marketshare well below 20% in Q2.

AtenRa · Jul 19, 2015

They still continue with the Contra-Revenue in 2015 when they said they would stop at the end of 2014. Looks like they will continue with Contra-Revenue for the entire 2015.
Also, Client Computing Group operating income fell 38% YoY to 1.6Bn.

http://seekingalpha.com/article/332...h-on-q2-2015-results-earnings-call-transcript

Stacy J. Smith - Chief Financial Officer & Executive Vice President

Tablet unit volumes were 9.9 million units, up 11% year over year. We are on track to our annual goal of improving mobile profitability by $800 million, with about a third of the improvement realized to date. Operating profit for the overall Client Computing group was $1.6 billion, down 38% year over year.

ShintaiDK · Jul 19, 2015

They didnt say the contrarevenue would stop. But being reduced with 800M$. That statement came from the CEO in november.

Marketshare still expanding, BOM costs going down.

Its simply a cost they have to pay for being late and to attack the established ARM ecosystem.

Glo. · Jul 19, 2015

I would not be completely shocked if AMD would end up with only designing IPs and licensing them to contractors, something like ARM is doing.

ShintaiDK · Jul 19, 2015

Glo. said:
I would not be completely shocked if AMD would end up with only designing IPs and licensing them to contractors, something like ARM is doing.

I dont think AMD got anything on the CPU side to offer (And they cant license out x86 designs). So more like what Imagnation Technologies is doing. But they need to do it fast.

AtenRa · Jul 19, 2015

Contra-Revenue was supposed to be only for a single year (2014) and with a cost of 1Bn. It has passed both the time-line and budget.

ShintaiDK · Jul 19, 2015

AtenRa said:
Contra-Revenue was supposed to be only for a single year (2014) and with a cost of 1Bn. It has passed both the time-line and budget.

Thats not what the CFO said. And there will also be contrarevenue in 2016 with a remote chance of breaking even.

Its not for fun the consolidation factor looks like this:

AtenRa · Jul 19, 2015

The only reason Intel continues with this Tablet charade is to keep their fabs utilization high because of the Desktop/Laptop volume decline. They already admitted a 2.5 year cadence between new process (14nm and 10nm), without those tablet volumes they would go to 3 year cadence or even more.

ShintaiDK · Jul 19, 2015

AtenRa said:
The only reason Intel continues with this Tablet charade is to keep their fabs utilization high because of the Desktop/Laptop volume decline. They already admitted a 2.5 year cadence between new process (14nm and 10nm), without those tablet volumes they would go to 3 year cadence or even more.

They continue because they want to dominate the market. Rather than being on the sideline. And the next step after tablet is smartphones.

It got nothing to do with the node advancement.

cbn · Jul 19, 2015

AtenRa said:
They already admitted a 2.5 year cadence between new process (14nm and 10nm), without those tablet volumes they would go to 3 year cadence or even more.

Don't forget 14nm was a 1.5 node jump from 22nm. (16nm would have been a single node jump from 22nm)

With that mentioned, it is true than 14nm to 10nm is only a single node jump.

Intel Q2 Financials- revenue down, profit down, datacenter up

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