Sat, Aug 23, 2014, 5:50 AM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Intel Corporation Message Board

  • parabolic_lover parabolic_lover Feb 2, 2013 12:34 PM Flag

    A Value Comparison Between Intel And Qualcomm

    Intel (INTC) stock has had a rough time of late, falling over 16% year to date and over 30% from its 52-week high of $29.27 set earlier this year. On top of that, Paul Otellini announced that he will be stepping down as CEO next year, creating even more uncertainty among shareholders. This all comes as the company faces intense pressure in its chip business from the mobile and tablet markets. Qualcomm (QCOM), which recently took away Intel's position as the world's largest chip maker, is leading the way with its smartphone chips. Qualcomm chips are in basically all mobile devices, ranging from the Google's (GOOG) Droid RAZR M to Nokia's (NOK) and Microsoft's (MSFT) Lumia 920.

    This loss in market share has resulted in a contracting of margins for Intel. Intel's margins, which used to be as high as 65%, are now averaging 55%. As more and more consumers make the move to mobile devices, PC sales will continue to decrease, which ultimately has negative effects on the overall revenue that Intel can realize. Qualcomm, on the other hand, currently is in a perfect position to capitalize on this move to mobile devices, and consequently has seen its margins continue to expand.
    Even though it already seems clear that Intel is not adapting to the times, it is rumored that the company is proposing the idea of supporting Apple (AAPL) with all of its ARM chips. With tensions currently high between Apple and Samsung Electronics Co., Intel is hoping to capitalize on this opportunity to increase overall market share and gain penetration into the mobile market. Unfortunately, the overall consensus from the analyst community is that the total impact to Intel's bottom line would be minimal.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Some additional color ....

      "Qualcomm (QCOM), which recently took away Intel's position as the world's largest chip maker"

      Market cap. Intel is still 2x QCOM in revenues. A big chunk of revenues and bigger percentage of profits are from licensing and royaltys on QCOM IP.

      "This loss in market share has resulted in a contracting of margins for Intel. Intel's margins, which used to be as high as 65%, are now averaging 55%."

      Intel gross margings have been as high as 65%. Do the Intel gross margins look like they are "now averaging 55%"?

      Quarterly Gross Margin
      Dec. 31, 2012 58.00% Intel idled fabs to bring inventory back in line.
      Sept. 30, 2012 63.28%
      30-Jun-12 63.36%
      31-Mar-12 64.04%
      Dec. 31, 2011 64.46%
      Sept. 30, 2011 63.36%
      30-Jun-11 60.64%
      31-Mar-11 61.38%
      Dec. 31, 2010 64.64%
      Sept. 30, 2010 65.94%
      30-Jun-10 67.21%
      31-Mar-10 63.39%
      Dec. 31, 2009 64.72%
      Sept. 30, 2009 57.56%
      30-Jun-09 50.84%
      31-Mar-09 45.32% Intel paid the $1.45b EU fine out of cash flow, market bottom
      Dec. 31, 2008 53.11%
      Sept. 30, 2008 58.91%
      30-Jun-08 55.43%
      31-Mar-08 53.83% Results lower during financial crash

 
INTC
34.94-0.21(-0.60%)Aug 22 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.