Intel Rakes in the Cash

[AnandThenMan]

This makes my blood boil when I see headlines like this:

Intel turns in $2 billion net profit

CHIP GIANT Intel said its revenues for its second quarter amounted to a not insignificant $9.2 billion, while its net profit amounted to over $2 billion.

That's a difference that represented 15 per cent growth year on year, quarter on quarter, said Intel's CEO, Paul Otellini.

Despite having mostly outdated, second class products Intel is RAKING in the cash! Nice to see how a company can succeed by bully tactics and outright illegal activity.

Honestly, why should Intel even give a crap about having inferior products? Hell, Intel can spend millions in court fighting off AMD it will barely put a dent in their bottom line. Intel makes more profit in a week than AMD does for a whole year.

Source

 

[Zebo]

Entusiasts are like 3% of market which is largy 50-50 right now looking at half-life servers and anand's users.. Until AMD is allowed to sell to OEM's, who the other 97% buy thier stuff from, AMD will always be treading water. The vulcan in me likes when they loose lots of money and start selling CPU's at firesale prices again, more money in my pocket... this over $100 CPU stuff is for the birds.

 

[Bona Fide]

I think it's because they've established a HUGE (60-70%) clientele. That's what it's all about now: your fanbase.

 

[jpeyton]

Offering DEEP volume discounts to the #1 computer company in the world for exclusivity in their entire lineup sure doesn't hurt.

 

[BitByBit]

Bingo.
Until AMD lands a contract with someone like Dell, it will still trail Intel in sales.

 

[phaxmohdem]

Would you really want AMD to become bigger or as big as Intel? Can't we just all be happy that we own the best processors on the market currently and just snicker at the mindless Lemmings who jump off the blue man cliff. I for one do not care if my friends think thier shinky new Prescott based PC is da shiznit. I know what I like and thats all that matters to me in my world.

 

[jpeyton]

Originally posted by: phaxmohdem
Would you really want AMD to become bigger or as big as Intel? Can't we just all be happy that we own the best processors on the market currently and just snicker at the mindless Lemmings who jump off the blue man cliff. I for one do not care if my friends think thier shinky new Prescott based PC is da shiznit. I know what I like and thats all that matters to me in my world.

AMD certainly wants to become as big as Intel.

And generally having two BIG players in any particular market is best for innovation and for the consumer. nVidia and ATi are a good example of how a hotly contested market can force two companies to continually try to one-up each other in each successive generation of products while keeping prices reasonable for consumers.

 

[Fox5]

Originally posted by: AnandThenMan
This makes my blood boil when I see headlines like this:

Intel turns in $2 billion net profit

CHIP GIANT Intel said its revenues for its second quarter amounted to a not insignificant $9.2 billion, while its net profit amounted to over $2 billion.

That's a difference that represented 15 per cent growth year on year, quarter on quarter, said Intel's CEO, Paul Otellini.

Despite having mostly outdated, second class products Intel is RAKING in the cash! Nice to see how a company can succeed by bully tactics and outright illegal activity.

Honestly, why should Intel even give a crap about having inferior products? Hell, Intel can spend millions in court fighting off AMD it will barely put a dent in their bottom line. Intel makes more profit in a week than AMD does for a whole year.

Source

Perhaps Centrino is the answer? It's a smaller chip than P4s or A64s, yet sells for far more, assuming yields are good the Centrino should be cheap to produce, and since it is almost entirely P3 and P4 tech, R&D to produce it was probably low too. That, and that AMD's athlon 64s and opeterons have had a massive like 2-3% impact on intel.

 

[ryanv12]

One must not forget that many, many computer sales are now laptops...and that's on the rise. The Turion 64 is not superior to the Pentium-M. While it may outperform it a lot of the time, battery life is a big variable to consider for laptops.

Either way, back to what Zebo is saying, only when AMD gets a significant OEM presence will they become a more successful company. That's what they're attempting to do now.

 

[miketheidiot]

Originally posted by: ryanv12
One must not forget that many, many computer sales are now laptops...and that's on the rise. The Turion 64 is not superior to the Pentium-M. While it may outperform it a lot of the time, battery life is a big variable to consider for laptops.

Either way, back to what Zebo is saying, only when AMD gets a significant OEM presence will they become a more successful company. That's what they're attempting to do now.

i thought turion had similar to lower power consumption?

 

[Valkerie]

Originally posted by: phaxmohdem
Would you really want AMD to become bigger or as big as Intel? Can't we just all be happy that we own the best processors on the market currently and just snicker at the mindless Lemmings who jump off the blue man cliff. I for one do not care if my friends think thier shinky new Prescott based PC is da shiznit. I know what I like and thats all that matters to me in my world.

Prescott machines are actually effective FYI.

 

[glugglug]

Turion has the same low power consumption.
But with the memory controller in the CPU, the chipset consumes less.

 

[sandorski]

Actually this is proof that a superior product(Centrino) is necessary. These results are in large part due to Centrino sales and not Desktop sales.

 

[ssvegeta1010]

Originally posted by: Fox5

Originally posted by: AnandThenMan snip

Perhaps Centrino is the answer? It's a smaller chip than P4s or A64s, yet sells for far more, assuming yields are good the Centrino should be cheap to produce, and since it is almost entirely P3 and P4 tech, R&D to produce it was probably low too. That, and that AMD's athlon 64s and opeterons have had a massive like 2-3% impact on intel.

The R&D to produce P-M was actually quite expensive because P-M was based of an attempt to produce an entire system on one chip (Tinma?) and the resulting processor, once refined, was P-M. So P-M its self took little development, but the failure of Tinma cost Intel quite a bit. Although that was all before Banias, so those costs are resolved now.

 

[phaxmohdem]

Originally posted by: Valkerie

Prescott machines are actually effective FYI.

Yeah for spaceheaters! Muahahahahaa...............


*shakes head rapidly* whoa sorry. The fanboi in me got out of its cage breifly. He has been restrained again..

 

[Pabster]

Originally posted by: AnandThenMan
This makes my blood boil when I see headlines like this:

Intel turns in $2 billion net profit

So your purpose for posting this was ... to flame Intel for making a nice profit?

<sigh>

If it were AMD turning in a big profit, I suspect your blood would be a little cooler.

 

[Viditor]

You need to actually read the balance sheet...
Intel's Revenues, Gross Margins, and EPS went down sequentially from Q1 to Q2. In fact, because Intel adjusted their anticipated taxes by $0.02 EPS, their EPS went down $0.04 QuarterOnQuarter. Intel's revenues are only up on a Year on Year basis...
In addition, a good portion of those revenues were due to a large increase in XBox sales.

It's most likely that AMD gained a small amount of marketshare in all sectors (especially servers!).

 

[zephyrprime]

Originally posted by: Viditor
You need to actually read the balance sheet...
Intel's Revenues, Gross Margins, and EPS went down sequentially from Q1 to Q2. In fact, because Intel adjusted their anticipated taxes by $0.02 EPS, their EPS went down $0.04 QuarterOnQuarter.

Maybe that's because of the Christmas effect? A lot of Q4 2004 sales may not book until Q1 2005.

 

[AnandThenMan]

Originally posted by: Pabster

So your purpose for posting this was ... to flame Intel for making a nice profit?

Intel is pretty much forcing the major OEM's to only sell their products or invoke their wrath. This is turn boosts their profits, allows them to maintain their market share, and hurts AMD very badly.

If Intel was legally powering themselves to the market share and sales numbers I would be the first to salute them. I admire innovation and excellence, not back stabbing and bully tactics.

So forgive me if I don't stand up and cheer a company that is sucking wind with most of their products but continues to make cash hand over fist AT THE EXPENSE of their competition.

 

[Viditor]

Originally posted by: zephyrprime

Originally posted by: Viditor
You need to actually read the balance sheet...
Intel's Revenues, Gross Margins, and EPS went down sequentially from Q1 to Q2. In fact, because Intel adjusted their anticipated taxes by $0.02 EPS, their EPS went down $0.04 QuarterOnQuarter.

Maybe that's because of the Christmas effect? A lot of Q4 2004 sales may not book until Q1 2005.

Actually, they book immediately. Intel counts any processor that is shipped as one that is sold, even if it never gets paid for.

 

[TGS]

Originally posted by: Fox5


Perhaps Centrino is the answer? It's a smaller chip than P4s or A64s, yet sells for far more, assuming yields are good the Centrino should be cheap to produce, and since it is almost entirely P3 and P4 tech, R&D to produce it was probably low too. That, and that AMD's athlon 64s and opeterons have had a massive like 2-3% impact on intel.

Centrino is the platform. To be centrino badged you must include the integrated Intel Wifi chip. Intels campaign on making centrino synonymous with a cpu has been one of it's most successful strategies.

 

[stevty2889]

Originally posted by: phaxmohdem

Originally posted by: Valkerie

Prescott machines are actually effective FYI.

Yeah for spaceheaters! Muahahahahaa...............


*shakes head rapidly* whoa sorry. The fanboi in me got out of its cage breifly. He has been restrained again..

My Prescott actualy did keep my bedroom warm in the winter, saved me on my heating bill..the rest of the apartment wasn't very warm, but my room was as long as I kept the computer running..

 

[BillyBobJoel71]

Intel doesn't care if there CPU's suck or if the lawsuit is lost, they are making more money then AMD has ever made and they don't care about the processors. they care about money. its there business to sell and try to make more that AMD, and taking the obervation that the average computer consumer doesn't even know what an AMD chip is, Intel is the dominating the market in pretty much everything.

 

[Viditor]

Originally posted by: SuperTyphoon
Intel doesn't care if there CPU's suck or if the lawsuit is lost, they are making more money then AMD has ever made and they don't care about the processors. they care about money. its there business to sell and try to make more that AMD, and taking the obervation that the average computer consumer doesn't even know what an AMD chip is, Intel is the dominating the market in pretty much everything.

The thing is that consumers don't buy anything from Intel...they buy from distributers and OEMs. In general, the lawsuit is critical for Intel because it's about limiting these groups to Intel only...the settlement money is far less important for AMD than Intel being forced to open up their grip on the market is!