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Intel Corporation Message Board

  • sharikou sharikou Jun 26, 2006 1:53 PM Flag

    Intel's financial outlook

    DELL is going to market AMD like crazy. It's a business decision, business decision is based on money. Simple?

    Intel execs are morons. They caused a price crash on Intel chips, instead of a price hike I proposed to them last year...What's the consequence of that? Dell's units and unit price will go down significantly. DELL's unit price will go down because Intel CPUs are dirt cheap now - a Pentium D 930 is only $100. DELL's units will go down because every small vendor can sell Intel PCes dirt cheap, DELL loses much of the pricing advantage...

    Suppose DELL's PC unit price drop by 10% and units drop by 5%. The result will be 15% revenue drop. Can DELL survive that kind of spiral down? No. What can Dell do? Go AMD and expand the AMD market like there is no tommorrow. Since Dell's Intel business will suffer 15% drop, DELL must sell AMD like crazy to make up the difference. I have analysed this many many times.

    Intel can be written off the book already. The prices of its chips have crashed by 60%, and units will be down significantly, as more vendors such as DELL are adopting AMD. The result will be continuing operating losses for Intel in the next 7 quarters. The end of that is an Intel at 1/10 of today's size, if it doesn't go straight to chapter 7.

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