The problem with Intel is that there's still no sign of a new game plan, even though the old one is withering. Same old same old in PCs, only Apple MACs seem to be still growing. And look what the fools are doing in mobile and data center - they're trying to replicate the PC strategy of hollowing out the device manufacturers and forcing all of the products to be mostly the same, just like in PCs. Where's the differentiation in Xeon-based servers? Not much. So the ARM-based guys are focusing on interesting system architecture, and people like Facebook are interested. So Intel's cloud CPU business is at risk, though probably not for a year or two. Still no leading mobile strategy, a weak tablet strategy - pathetic. Sorry, but fab process won't fix it all. The only bright spot looks like supercomputing. This is a conservative, incremental company increasing led by marketing people, faced with dramatic market changes, and they're lulled into confusion because their profits haven't evaporated yet. And rather than drive change the clueless CEO jumps ship after big speeches only months earlier that he had the best job in the world. How can anyone still be an Intel pumper?
I think fist of many is wrong about this. The line between a PC and a tablet is not so clear any more like they said in the conference call. It will use the same product, I don't see the weakness in that strategy. Also, I dont think the cloud technology is in danger where 99% of all workplaces in the world wont use the ARM technology. Social networks, yes that market is still developing but remember that Intel still has a significant technology advantage over anyone in the world. This capex spending is securing their position as a continuing world leader. Apple came in and cut into the market, but they have hit the roof with their products. Intel is keeping it's edge, I am not worried about that.
Sorry, but fab process won't fix it all.
Why don't read/listen TSMC CC or ASML CC
Even East figured out there is a problem - it will not change overnight but gradually it will start to sink in .
you don't even have to listen to Intel - listen to NVDA, BRCM, MRVL -
TI dumped huge investment in OMAP to move to greener analog pastures.
How excited was TI 12 months ago and now ?
I read the earnings call transcript, especially the Q&A. The problematic thing is that Intel's costs are increasing more than revenues and earnings will be lower for 2013. They are specifically spending an additional $4B with ASML (above and beyond the $11B per year they are already spending on capital expenses), this will be spread over both 2013 & 2014. This should drive profits in 2015 & 2016 and maybe beyond... but for now the weight of higher expenses and lower profits will hang over the stock. I have been bullish, but I cannot justify holding the stock in 2013, maybe I will buy back in Jan 2014.