Stacy Smith did a lengthy presentation last Tuesday, its on the Intel website, Investor Relations. He didn't sound too down (he's been something of a sad sack the last couple of earnings conferences) so I think the quarter is progressing about as they thought.
At about 49 minutes in he's asked about doing foundry work for Apple. (This is a couple days before the latest rumor broke.) He's a little vague, as to be expected, but I took his answer to be essentially "no." He said something about being hopeful of getting Apple's business, but X86 chips "are job one," implying that they'd like the business by convincing Apple to convert because of Intel's superior technology.
That's how I read it, someone else listen and see what you think.
Concerning foundry work for Apple, he didn't flat out say 'no, we will never manufacture ARM chips' so that tells me there is the possibility and I think the rumors are true and deal will be announced soon.
I few things I got from the presentation:
- He seems very surprised that INTC stock price has dropped to the point where it is yeilding 4.5% dividend
- cost per transistor continues to go down (24 min mark) for Intel but notes that competitors is not able to do this.
- Mentions a couple of times a major competitor (i think he means AMD) is about to exit the server market. AMD in deep trouble.
- Lenovo yoga selling like hotcakes...convertibles and detachables selling very well...lines between tablet and pc's are blurring. Believes there is pent up refresh coming
- Says 14nm manufacturing sites will be ramping up production starting in 2013. Not sure what he means by this? will 14nm products be available in 2013?
- expect Intel's phone market share to more than double for each of the next few years
- gross margins back to normal by 2nd quarter
He also mentioned that the haswell ultrabooks entering the market in the first half of 2013 will run at less than 10 watts and have twice the graphics performance.
Also, tablets in the 7 inch range might run on the medifield platform.
I also do not think Intel will produce arm chips.