October 19, 2011:
"However, our concern that Intel’s record 2011 capex of $10.5 bn to ramp a fourth leading-edge factory will lead to excess supply is unchanged. While Intel is building for a double-digit PC unit CAGR over the intermediate term, we estimate that PC unit growth will remain in the low- to mid-single digits through 2013."
What amazes me about the analysts is their single-minded focus on how Intel sales track the Microsoft Windows/PC market. Intel is a LOT more than just PCs and Microsoft Windows...Linux (running either natively or on VMWare and predominantly on Intel platforms), is grabbing a ton of the market share from all UNIX server vendors and from Windows. In addition, every major server vendor has an Intel offering.
As far as the mobile market is concerned, Intel may not be a big player (yet) at the device level, but all those devices eventually talk to servers on the back end. So the growth in mobile communications has had an huge indirect benefit for Intel.
Bottom line, the analysts need to do their homework.
I wonder what the Goldman Sacks analysts are saying out investing in their own company?!? Seems like they lost a very large sum of money this last quarter.
We should have let WS and the big banks crash and burn. Instead they took our tax dollar bailout and gave themselves huge bonuses, I guess for doing such a great job of screwing the American economy.
If they say the same thing long enough, one of these days, they might be right! And its better than admitting you ve been wrong,that costs you your job.
But to address the issue, Otellini has said consistently that if they fab too fast, they can adjust inventorys but if they fab too slow they are dead in the water. Its no surprise given they have been asked the same question every qtr for as long as I can remember that they are following the same playbook (no pun, lol) that has served them so well.
And to think that GS would use the same tired excuse to cover a series of bad calls really is amazing. I think the quality of their analysts has fallen with their preoccupation with politics. Maybe it really is time for Blankfein to leave.
I suggest to the befuddled analysts that the disconnect between reported PC sales and sales of Intel’s microprocessors is the Chinese knock-off market. The 1991 book Accidental Empires pointed out that computers are chips and software. Software and a Dell emblem are easy to pirate but Intel microprocessors are almost impossible. To me Intel passes the Buffet test – enduring competitive advantage
Greatest Scam (GS) has lost its reputation on bashing NTC for 1.5 years.
Who cares what they say?
When GS ups, sell as they are usually offloading their stock.
When they say sell, load as they want to buy cheap.
That's all they are good for.
All the top management there belong in jail for what they did to America.
Obummer and Bushbrain were bought off.
The Senate and house too.
I am not one too be far right otr far left but I do think Mr. Paul from Texas is the ONLY honest man running for President.
Obummer is a clown. AND I am a DEM.
Clearly Covello, IDC, Gartner, etc do not comprehend the power of emerging markets.
In the conference call Covello essentially asked
" why are all the hard drive and pc component makers doing poorly, while Intel is doing so well...?"
Obviously Covello does not understand the difference between the world's dominant chip supplier and Seagate or Micron.
Covello has got to be embarrassed by his constant screw ups with Intel and should be ignored at this point.
With retooling factories for Trigate, CAPEX is going to increase. DUH Covello.
Is this the "CAPEX" he is talking about? He seems so "stuck" on Intel being entirely driven by the "PC Unit Growth". Thanks for the insight James...but this is where Intel will be developing and innovating products that haven't even been imagined yet. We are talking about the future...Covello remains stuck in the past.