Stock down 25% from high because pc sales are down 1%. #$%$! Maybe a lot of people are waiting for Windows 8, just like people waited for the new iPhones right before a new model came out. Who wants to upgrade software on a brand new computer. While iPads are great, they are not a true replacement for a pc. Don't forget they also have chips in servers and lots of other products..
I said this in another thread, but I'll re-post it here as it seem appropriate to the topic:
"That last REAL major interface overhaul Microsoft did was Windows 95 and it was a SMASH hit. Windows 8 is the first MAJOR interface overhaul Windows has had since Windows 95. I tried it and I liked it. I think word of mouth will sell this os (and processors) like hot cakes. I never had much faith in it till I tried it. I work with computers all day as an IT admin and I was really impressed, I think the general public will be as well. Quarter 4 should see INTC back in the 23 to 24 range, but time will tell for sure. If you haven't tried the new interface, give it a go and see what you think for yourself."
The analysts believe the "PC is dead" and that Intel is a PC company.
The analysts believe that ARM will make a significant impact on the Intel ASP, profit margin and may take significant market share. Especially IF Apple converts its MAC lines to ARM (Note to Wallis .... I said this is what I think is influencing ANALYSTS and I am not saying it is true or false) .
The analysts believe that Intel cannot be successful in the new product market and compete with the low priced ARM based products.
SInce Intel has a VERY large percentage of the PC and SERVER computing market, there is more risk in them losing share than gaining (since their share is at 90%).
The analysts do not believe that Intel knows what is going on. Intel has warned on earnings twice in the last 4 quarters. Once for a flood that wiped out an overly concentrated disk drive operation in Thailand and the second time this quarter after Intel customers changed their orders. I doubt that Intel would have warned before their customers.
Laptop, desktop and server CPU chips are still a dominant part of their revenue.