Kevin, you handled that really well - kudos!
AE: Though you mentioned that Intel is dead money, the market is forward looking....and it appears to be going with either or both of the following:
(a) there is going to be a big announcement on Monday (Oncue TV? Foundry/Large Design win?)
(b) the analysts are beginning to look beyond the next 3 months
Main points from the last few days:
1. Tablet growth tempering
2. Intel's offerings in high volume, value space are compelling (Bay Trail, CT+, Medfield Tablets)
3. 40-million Tablet SoCs would be a sound footing for future growth
Can’t decide if you want a tablet that runs Android or Windows? Asus has you covered. An unannounced series of tablets passed through the FCC this week, and it looks like there are Windows-only, Android-only, and Dual OS versions.
These wouldn’t be the first tablets to dual-boot the operating system. But now that Intel’s latest Atom chips offer ARM-like battery life plus the ability to run full Windows desktop apps, these could be interesting machines to watch.
Details at the FCC are scarce — so it’s also possible that these tablets are ARM-based devices that run Windows RT rather than the full Windows 8.1 operating system. My guess is that’s not the case though — no company has released a dual-booting tablet with Windows RT yet, and it’s not clear if Microsoft would license the operating system for that type of device.
Here’s what we do know: the tablet will support 802.11n WiFi, Bluetooth 4.0 and will come in at least three versions. The Asus M80T runs Windows, the Asus M81T runs Android, and the Asus M82T is a dual-boot model.
There are also models labeled L80T, L81T, L82T, R80T, R81T, and R82T. It’s not clear if these models will have more storage, different processors, or other changes. I suppose they could also be models with cellular capabilities, which means they’d most likely eventually show up in separate FCC documents.
Quote: “That was the goal. Maybe not enough -- I think we didn't explain that super-well. I think we didn't differentiate the devices well enough. They looked similar. Using them is similar. It just didn't do everything that you expected Windows to do.”
It was not a question of explaining or explaining super-well as Larson-Green suggests. It was a disaster of a strategy.
Some exec made a decision and off they went holding hands and singing Kumbaya.
If anyone at Microsoft had had the sense to do a smell-test, they would have known that the only advantage Microsoft had in fighting Android/iOS - was their legacy applications - and that they were throwing away their only trump card !!
Folks would say that this is 20/20 hindsight. Not true. You can go back 2-3 years and see how so many folks wrote extensively on this disaster of a strategy.
We all know that the Infineon team has been extremely slow to deliver its LTE offerings. Which actually led to me to the above train of thought...
Regarding foundry contracts with ARM competition, I am wondering if this was done intentionally to also light a fire under the x86 teams to expedite their delivery. Without this external competition, they may not feel a huge urgency since they are fully assured of Intel's manufacturing and process lead being in their favor. Just a thought.
Regarding the guidance, ww and I posted the article on SA regarding the 3.9% growth which gets eaten up by contra revenues/NRE. At iHub, you mentioned you preferred organic growth but if there is a 3.9% growth, it is a 3.9% growth - never mind it gets spent on contra revenues/NRE. Net Net, it is not a flat guidance. Do you agree?
Regarding enabling a competition, I think Marsavian (initially) and you (later) have taken it BK's words too literally to mean Intel will fab for Qualcomm, nVidia et al.
Yes, he is a manufacturing guy. He was probably picked by the BoD to expedite more foundry contracts to get revenues and profits up - while Intel pushes further on its own Tablet, LTE, and Smartphone offerings (in that order). But, I don't think BK will go so far as to sign up foundry customers who would impact Intel's future success in these spaces negatively.
Now, this looks like a mass-market tablet. A lot of people should be able to afford this sub-$100 (including taxes) tablet and should be fairly comfortable buying a device with HP/Intel names on it.
Ashraf, I agree. Though I think you sometimes swing like a pendulum on Intel, on the whole, I think you do your homework and make good points. Keep it going.
Please stop the personal attacks. I think it makes sense to argue his points, but the personal attacks reflect pretty badly on you (and you alone)!
ww has already posted this under a different subject, but I wanted to highlight the income growth in the subject...
According to this guy, the $2 billion "contra revenue/NRE" is being spent on "incentivizing OEMs to switch to Atom...". Once you remove this $2 billion revenue growth as contra revenue, 2014 is essentially flat with 2013.
Curious to know if Intel has been doing any of this spending in 2013? Which OEMs are they spending money on? What are the results? Perhaps, we will know some results of these efforts at CES and MWC in January/February.
Intel Corp. Rating Reiterated by Jefferies Group (INTC)
Posted by Alphonse Anthony on Nov 22nd, 2013
Intel Corp. logoIntel Corp. (NASDAQ:INTC)‘s stock had its “buy” rating reiterated by research analysts at Jefferies Group in a report released on Friday, American Banking News reports. They currently have a $32.00 price objective on the stock, up from their previous price objective of $30.00. Jefferies Group’s target price suggests a potential upside of 26.83% from the stock’s previous close.
Citigroup Reiterates on Intel Following Company Analyst Day
Dwight Einhorn, Benzinga Staff Writer November 22, 2013 10:23 AM
In a report published Friday, Citigroup analyst Glen Yeung reiterated a Neutral rating on Intel Corporation (NASDAQ: INTC [FREE Stock Trend Analysis]), and raised the price target from $24.00 to $28.00.
In the report, Citigroup noted, “On mid- to high-single digit declines in PCCG offset by mid-teens increases in DCG, Intel expects 2014 sales to be ~flat with 2013 levels; this implies ~$52.6B, slightly below consensus of $53.7B, assuming Intel reaches the mid-point of its 4Q13 guidance. Gross margin is also expected to be flat as reduced start-up charges are offset by lower Other IA GM's (due to aggressive tablet pricing); consensus models a 70bps increase. Not surprising then, operating income is also expected to be flattish y/y.”
Intel closed on Thursday at $24.65.
Deutsche Bank Reiterates on Intel Following Company Analyst Meeting
Dwight Einhorn, Benzinga Staff Writer November 22, 2013 10:47 AM
In a report published Friday, Deutsche Bank analyst Ross Seymore reiterated a Buy rating on Intel Corporation (NASDAQ: INTC [FREE Stock Trend Analysis]), and raised the price target from $26.00 to $28.00.
In the report, Deutsche Bank noted, “INTC's analyst mtg began with the Chairman stating that to his personal Embarrassment the co had ‘lost its way'. We believe this powerful admission was a positive first step toward INTC returning to growth, with the new CEO's aggressive stance toward entering new mkts further supporting this strategic change. While successful execution on this strategy remains paramount, we believe INTC can return to growth in 2H14/15 as the PC mkt stabilizes and share gains emerge in tablets, phones, foundry etc.”
Intel closed on Thursday at $25.23.
So why are these guys upgrading/reiterating in the face of a sell-off? Perhaps they are able to see beyond the next 6 months...?