Both Intel and AMD are losing money big time, benefiting system builders and rest of the world at the expense of investors. It's a shame that this is happening, when there are only two companies making all the chips that world wants. Intel is a big socialist company, spending unjustifiable amounts on their employees and infrastructure, just to refresh their product catalog. Obviously, AMD can't last this recession.
I think, Intel should stop making/selling any CPUs selling for less than 150 or so and close all the factories, terminate activity that focus on those areas, and let AMD have that market. AMD can't find enough resources to meet more than 15% of the world demand anyways and might as well, behave responsibly and move up the ladder by retooling their factories to stop making cheap chips and fill the gap left open by intel.
I can't believe CPU companies can't make money, even without Chinese competition !.
"Intel should stop making/selling any CPUs selling for less than 150", agreed.
Intel should go for high end CPU and leave the low end for AMD then they both will be OK as for many years and intel was always better than AMD. however, intel made a bigest mistake to introduce atom and go after for low profit margin, nickel and dime, and kill themself slowly, every atom sell then will be a fewer intel high end CPU sell. secondly, consumers start realize that why they have been paying so much for intel for many high end CPU features that actually did not need it at all.
Price war is not a solution to help intel much any more when AMD has a better cost-effective plattforms, unless intel wants to kill itself too.
Intel need a new CEO to rethink about what they're doing, need to think big and living large, not only for the company but also for benefiting system builders and rest of the world.
Intel is not losing money. Losing money means you shelled out more than you brought in. The Q4 was abysmal at just over 200 million net, but if you treat Intel like everyone treats AMDs financial reports (let's exclude the one time, cashless charges), Intel banked 1.2 billion in Q4 2008.
The last major recession, the tech bubble burst of 2001, Intel remained profitable through that entire time while everyone else lost millions, even billions. This recession is so deep, it is entirely possible that Intel will go into the red but if history is a guide, it is also entirely possible they won't.
This recession is different from the tech bubble burst. PC sales have fallen off a cliff. The banking institutions who have always been huge spenders on IT in the past are no longer spending. Alos bank are no longer lending to business who also used to spend on IT. And consumere aren't spending either. IT spend is on hold by everyone unlike anytime in the past and Intel have never been in such a situation. AMD might go belly up but that doesn't benefit Intel if no one is buying IT.