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  • qsand1us qsand1us Feb 2, 2013 3:45 PM Flag

    AMD to take market share away from Intel.


    Why did Intel give a statement at the CC indicating the PC sales are expected to continue slowing down. I believe 6% for Q1 2013.

    It will be easier for AMD to take market share away from Intel and Nvidia.

    This is already happening with AMD landing the new Wii U, PS4 & Xbox 720.

    Nintendo, Microsoft and Sony all saw the value in going with AMD for not only the lower price, but with an AMD products that work just as well or better.

    Sentiment: Strong Sell

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    • Don't spill any bong water on the carpet. It leaves stains.

    • "Why did Intel give a statement at the CC indicating the PC sales are expected to continue slowing down. I believe 6% for Q1 2013. "

      Q1 is only part of 2013. Q3 and Q4 are holiday seasons and a number of purchasers will be delaying until Haswell is released during the year.

      "It will be easier for AMD to take market share away from Intel and Nvidia"
      "This is already happening with AMD landing the new Wii U, PS4 & Xbox 720."

      Intel is not in the Wii, PS4 nor Xbox. That did not take any market share from Intel. If the game consoles take market share from PC's, then these AMD design wins will do two things. They will cannibalize some AMD PC sales and some Intel PC sales. Do you think that the cannibalization will take place at the LOW end of the PC market (AMD) or do you think that it will take place at the HIGH end (Intel)? Businesses will not replace PC's with Wii consoles. At least I know that the company I work for will not.

      I hope that AMD survives as an independent company. They have stumbled badly several times recently. Intel will have to help for them to survive. AMD credit rating was downgraded 3 levels recently. The cost of money for them is much higher now and cash will be tight for some time.

      Congrats on the design wins they will help.

    • Didn't Intel say in the CC to expect PC slowdown for the rest of 2013?

      Sentiment: Strong Sell

      • 1 Reply to get_smart1998
      • Why don't you get yourself smarter and read Intel's call transcript.

        Stacy Rasgon - Sanford Bernstein
        Hi, guys. Thanks for taking my question. It sounds to me like you are guiding traditional PCs down a ton this year and yet you seem to making a very big bet on revenue growth in to 2014 because it seems like this flood of CapEx doesn’t really start getting depreciated until then. So how much do you need to take, in terms of share within tablets or how much of that tablet market needs to be eaten up by your convertible PCs in order to fill that big bet in 2014 that you seem to be making and avoid the underutilization that may otherwise happen from the CapEx that you are spending?

        Stacy Smith - Chief Financial Officer, Executive Vice President
        I take issue with the characterization of guiding PCs down a ton and then some big snap back.

        Stacy Rasgon - Sanford Bernstein
        But you said revenues were up of 2% with data center up in the double digits and phones and tablets ramping, which implies that the core PC business is down.

        Stacy Smith - Chief Financial Officer, Executive Vice President
        No, so I said for the company its low single-digits in terms of our expected revenue growth, data center up and back into the double digits. You still end up with client growth when you go through that and I think the point that Paul was making earlier was a really important one which was the lines between a traditional notebook, a convertible, a tablet have blurred to the point that it’s a market for computing and we are expecting some unit, now Q1 we think is seasonally down.

        That’s what we guided but when we get into the back half and you have a combination of new products in the market and an improving macroeconomic environment I think that’s a fairly reasonable assumption on the year.

        As we think, into the future, we think of it as just more or less normal growth, consistent with what we have historically seen, from a unit standpoint. It's just growth across a much wider range of devices than what we have historically supported. You want me to add anything to that?

        Stacy Rasgon - Sanford Bernstein
        Okay, I guess a follow-up on that. My math suggests that you are guiding depreciation this year at $1.7 billion quarterly run-rate, which is flat which suggests to me that your incremental CapEx spending doesn’t actually start getting depreciated on next year, which, again, tells me that you are looking for a fairly solid amount of growth in 2014 to cover that. At the same time, I know you talked about phones and data center and PCs and everything adding to that but the data center business, you sell what, right now 16 million chips a year, something like that which comes from a fab.

        You have phones which Paul admitted, we are probably sill going to be small. Then you have tablets where the dies are a lot smaller. So unless you are driving tons and tons of volume, it is actually not a ton away for volume. So what sort of growth, is your historical level of unit growth enough to fill the CapEx you are putting in and what gives you confidence that you can you have that same kind of historical level of unit growth?

        Stacy Smith - Chief Financial Officer, Executive Vice President
        I think it is and I think that we have line of sight into what our customers are designing around Haswell which is this year's innovative new core product and Broadwell which is next year. So we know the specs on those. The customers know the specs on those. I have seen the prototypes of the industrial designs. They are really exciting products. Our customers have not had this level of performance in this kind of form factor before.

        To some extent, we are branch predicting that that level of product will generate sufficient excitement to keep the client growth going. In none of our numbers are we projecting an inflection point, upwards or downwards. We see renewed growth around these new form-factors.

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