It's far bigger than that. The vision promoted by Vlad and the Necons is returning Russia to some envisioned past glory with the landmass Russia had in the 18th century. They don't need to provoke a war with Ukraine just to get a right-of-way. They could lease land a build a highway.
The absurdity of all this is that Vlad could easily stop this violence if he wanted. If eastern Ukrainians want to live under Russian rule Vlad can invite them all to become Russian citizens and move across the border to Russian territory. Russia has the largest landmass of any country and Russia needs to grow its population after decades of high mortality and its young adults moving to Europe, America and Canada.
But making separatists happy isn't Vlad's goal, he wants a war to justify controlling Ukraine, its landmass, its resources and people.
Truth is always the first tragedy of war. Now it's innocent civilian lives. Separatist will simply blame it on the Ukrainians. It won't bring an end to anything but because that outcome doesn't fit with Vlad's agenda.
Suppose before Intel announced the buyback they had already purchased call options to cover the buyback for the entire year. Then during the earnings call they announce the buyback along with the other positive news and they're holding in-the-money calls on their own stock. The buyback just became a whole lot cheaper. Why would anyone surrender cheap debt when they can make money like this?
Yes, but as everyone knows Intel "missed mobile" so for all practical purposes Intel's Mobile Group is a startup and the best way to measure startups is by progress toward the goal. In this light they are doing super. The 2-1 device they enabled with Atom is the most important new form factor since the development of the tablet. That is why Intel is on track to grow from single digit to 20% of the global tablet market this year alone with roughly 90 new 2-1 devices planned to launch before the holidays. And everyone knows contra is going away.
Intel's effort in smartphones will begin seeing traction also, though later, probably next year.
What investors see in the Mobile Group is hugely successful products, design wins, rapid sales growth and progress toward the goal, plus Intel is so successful they can easily afford the $2B investment.
Oh the "injustice" of it all.
They said the first $4 billion would be purchased this quarter and they had about 13 days to do it before the announcement and be consistent with that statement. Surely they know what they were going to announce. They probably already made a good deal of profit on their purchase.
No company can do what Intel does as it pushes the edge of physics for high volume chip production. No company can step in and take Intel's place. How many companies can make that claim? This isn't Coke vs Diet Pepsi, or Ford vs GM. There is no "vs" when it comes to Intel. They are on that podium alone.
They are a national asset.
As I said it would not be standard for Intel to sell their own branded consumer device, nor do I believe they need to. Intel's preferred model is to sell to OEMs and due to their manufacturing strengths they can compete, and even thrive in commodity parts. They don't need to try and be a Google or Microsoft but there will be phones in the US with Intel SoCs and other components.
Sure enough, this is built on real fundamentals and Intel's competitive advantage looks ever better going forward.
There will be Intel smartphones and Intel will certainly make reference designs. It wouldn't be Intel's standard approach to make Intel branded consumer gear but it's certainly within their means. Whether they feel compelled to sell their own phone likely depends on how quickly OEMs get on board with their designs and by 2015 Intel's smartphone parts becomes very compelling.
Some say smartphones are becoming a commodity and that's it's not a very interesting business. From an ASP trend perspective that may be true but from a strategic perspective Intel must have a credible solution.
Intel is already a big player and set to take 20% of the market this year alone. Contra revenue is the right decision to get market share now and everyone knows contra revenue will go away and Intel will still have the marketshare.
AE also trashed Intel's tablet efforts but now they're on track to sell 40 million of them this year.
Indeed. The naysayers complained Intel wasn't in mobile (tablets or smartphones) but now that Intel has proven them wrong in tablets they've narrowed their focus to smartphones. The list of missing items critics like to complain about gets smaller by the day. Smartphones was always going take longer, we know that. However we see the steady march Intel is making toward that goal.
Of course, then there is the Internet of Things that can eclipse the size of the smartphone market but critics like to ignore that topic.
I appreciate well reasoned critical analysis but with AE the glass seems to always be half-full on Intel's Mobile.
I would point out that he missed a pivotal change in the tablet space. Because tablets had originated with ARM/Android & iOS he believed Intel would not see any traction in the space until Intel competed on ARM's battleground with Android. Instead Intel & partners redefined the tablet with 2-1s using Windows and delivering far more versatility for work and entertainment than any ARM tablet. And these 2-1s sell in the same price range as many plain ARM tablets. Hence Intel's meteoric growth in the tablet space. Yes, Intel has Android tablets too but the 2-1s is where the innovation is and what's going to be huge going forward That's why there are like 90 new models of 2-1s preparing to be released. This is because experienced buyers want more than cheap, they want lasting value for their purchase.
Now AE seems to have shifted from Intel's "Missing Android" to Intel Mobile's yet-to-occur break-even and again he'll miss the bigger picture that will drive Intel's trading range.
Intel is a company that continually pushes the edge of physics and creates complex technology in volume no other company in the world can do. If Intel suddenly stopped operating the modern world would definitely feel the loss.
Facebook is an overgrown website whose business model exists to sell the personal data of its users and if it stopped operating there would be numerous others to take its place. The world would barely notice FB's absence.
At least Amazon is a merchant with an honest business model. They aren't irreplaceable but they do provide utility and they do have a super return policy.
Interesting comment he made about Intel's share buyback, particularly the $4B Intel said it will be purchase this quarter. I assume Intel expected what was going to happen when they reported glowing Q2 numbers so they should have purchased within the last week. That would qualify as "this quarter". In any case, it suggests they are very confident the second half is going to look very good.