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The "Warnings" Begin: Intel Slashes Q1 Revenue Forecast by 7%, Blames "Weak Demand"
Unpossible? Chipmaker Intel just took an ax to its Q1 global revenue expectations:
- *INTC SEES 1Q REV. $12.5B-$13.1B, SAW $13.2B-$14.2B, EST.$13.72B
- *INTEL CITES 'WEAKER THAN EXPECTED` BUSINESS DESKTOP PC DEMAND
Of course, we will be told this is one-off and that Intel is now no longer a belwether but "weaker than expected conditions in Europe," is not what the talking heads have been telling us.
Full Intel Statement:
Intel Corporation today announced that first-quarter revenue is expected to be below the company's previous outlook. The company now expects first-quarter revenue to be $12.8 billion, plus or minus $300 million, compared to the previous expectation of $13.7 billion, plus or minus $500 million.
The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain. The company believes the changes to demand and inventory patterns are caused by lower than expected Windows XP refresh in small and medium business and increasingly challenging macroeconomic and currency conditions, particularly in Europe.
The data center business is meeting expectations.
The company is forecasting the mid-point of the gross margin range to remain at 60 percent, plus or minus a couple of percentage points, as lower PC unit volume is offset by higher platform average selling prices. Expectations for R&D and MG&A spending and depreciation in the first quarter remain unchanged.
All other expectations have been withdrawn and will be updated with the company's first-quarter earnings report on April 14.
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Infinite NSA spying on this world using American tech companies is not helping.
Windows 8 isn't helping either. Got one of them at the office. Called the guy who does our IT work and demanded he roll it back to Win 7 Pro.
Intel CPU can not be trusted. Expect a 10,000 layoff from Intel shortly.
These companies want to play lapdog to the USSA, they are going to feel the pain.
Laptops are a stagnant business. No growth there. So many servers will be on the surplus market when Silicon Valley implodes soon Intel will never sell a new server for years. Game over.
As a Mac user, I installed Windows 7 to run a Windows based tax program. It's not a bad OS. Don't know why Microsoft ran away from that model so quickly. I thought they'd at least keep it and tweak it one more major time. It's a shame. It's the only one I think XP users could have migrated to and felt comfortable with. It was a whole boatload better than Vista, and less demanding on the hardware. Lots of PC users that would have liked it didn't even have a chance to try it out. Maybe NSA wanted an 'upgrade' to improve 'integration'?
Windope 7 sucks horribly. Windopey 8 is worse IMO
Windog 10 will be a free upgrade for both those P-OS
BTW, you do know your Mac runs on an Intel CPU, don't you?
My wife got a new laptop with windows 8, the first thing I noticed was no start button, WTF?
Yeah there is.
It's that window thingy in the lower left corner
The "Power Options" symbol to shut down is to the right of the owner icon.
Get http://classicshell.net/downloads/
It's free and I'm still using XP style Start Menu through it.
Or just install one of those Win7 emulator programs like Start is Back. The look and feel of Win7 with the efficiency of Win8 (not a joke.)
shit. wont this hurt their ability to expand (the stock price) by borrowing money to buy its own shares? and then have negative cash flows in future years since buybacks add NOTHING to future cash flows while interest and debt still needs to be paid.
With 60% margins, they're paying for buybacks with profits. They have borrowed money, but simply put the cash on their balance sheet, I think their CFO was asked why during the earnings call a while back, and he answered that in the current interest rate environment, it was stupid not to, even if he didn't need it then, he might need it later when rates re higher.
The much bigger story here, for Intel and most industries, is that buybacks continue to be considered a better use of money than capex -- and hidden in that is the simple message that the companies don't expect growth to return or their end markets to improve any time within the capex window, which is typically 3-5 years. Not that we don't already know this, but it's a pretty solid confirmation that the economy is dead, and will stay dead, until 2020 or later.
Agreed
Also Moore's law. Moore's "law" roughly states processor speeds will double, and prices will drop by half every two years. The period of shipping more devices to cover the drop in prices is over. This is why Dell is sucking so bad. When you make 5% of the deal, it gets hard when the amount you take 5% of drops by half every two years.
Who cares about earnings, the only thing that matters is buybacks.
As long as buybacks are impervious to the weather the show shall continue.
Seriously. Can someone explain to me why seemingly half the US financial sector announced buybacks and dividend hikes today? Rats making off with the loot as quick as possible before the ship sinks. Sickening.
they need to prop up market by any means, period
Someone who didn't know any better would see these moves as, gasp, coordinated.
Working brilliantly so far, market above yesterday's highs and financials surging.
Ugly, ugly, ugly
you heat oven burning 100 dollar bills. It's the same.
You could buy woods, oil or gas, but who needs real sector?
There is a decreased demand for US technology products that contain built in NSA spyware.
[like every Intel CPU]
Intel should follow Google's lead and include adware in its CPUs. How much would companies pay to have the initial boot screen show an ad for Coke or Pepsi or Trojans?
(Don't go all technical on me and complain that the BIOS controls the initial boot.)
Source: tinfoil?
Intel wasn't ever implicated in any of the snowden NSA links. Google, apple, microsoft etc all were
Intel engineers tried to get Theodore T'so to alter the pseudo-random number generation in Linux. Intel wanted Linux to rely on Intel hardware only.
My goodness me, who on earth would want Linux to have a compromised Intel-controlled RNG, used in those complicated encrypto-thingies? I simply have no idea, honest.
Everyone knows businesses don't buy computers when it is cold and icy outside.
At least they’re not blaming it on a blizzard!
Yah Big, they deserve points for that
This is the meme you're looking for:
http://i.ytimg.com/vi/hHDnD62QWTU/maxresdefault.jpg
Nothing a $200,000 pre-paid debit card issued to every American can't solve.
don't be a fool....it is $2 Billion each for select donors to Obama's retirement fund. They will then buy up all the intel production then rent the computers to pauper americans using their EBT computer allowance, they can also write off as rental income as charity the computers will also be classifed as running off renewable energy so they receive twice the value of the cost. They will also embed a bitcoin algorithim to print Bitcoins for themselves as well. You lose they win....do you know nothing!
And you won't actually do anything about it because you're fed and entertained.
Bread and circuses, including internet comments.
Its the NSA crap.....why buy American Spy machines????
Looks like they are going to have to significantly lower their prices on their chips. If the masses can't afford McDonalds, they certainly are not going to upgrade their desktop/laptops.
Here is some good news about McDonalds:
https://www.youtube.com/watch?v=p36rxQunljU
Intel's CPU prices have been steadily growing. I bought i5-4690 for 190 euros but its now over 220. Something very fishy going on with prices, in europe atleast.
The Euro has lost 23% of its value against USD in the last 12 months, not sure when you made your first purchased but 190 x 1.23 = 233
And a Euro used to be worth approximately $1.40, whereas now it's $1.06 or so. Maybe that has something to do with it. Put all that i5 power to work and figure it out.
Siri, how can I use all my i5 power to figure this out?
The future of computing will be driven by the lowest cost producer, which today are open source asian ARM processors running flavors of linux headed for a price of about $1.00 per CPU.
This renders Intel's business model broken in the near future by two orders of magnitude.
Blame the Jews in Haifa making the SkyLake and Broadwell CPUs.
You cant put those backdoors on a CPU for free now can you?
if you think it just began, you have not been paying attention. Here are the profit in dollars before the Intel news: (Apple has been included and ATT booted) $$$ are in billions.
Dow 30 Profit ($$$) Year % Change(YOY)
2013 346.633 4.44%
2014 347.144 0.15%
2015 334.090 -3.76%
but if you multiply by negative interest rate bonds you get a positive!
But doesn't Apple need more computer power to run Itunes?
What you listen to becomes part of your psychological profile. Which means they can take whatever you listen to and twist it into whatever fits the narrative. Use your imagination, because you can back out of art to mean anything you want it to mean.
Must have been cold and snowing everywhere around the world.
If INTC falls that only proves the rest of the market needs to rally, rigth? BTFD?
This whole technology thing used to produce big productivity gains, but now I have my doubts to its future. What does the Apple watch really do for your bottom line? Can you even measure it? You can still run a medium sized company without using any computers. I'm starting to model my own business to run computer and electricity free as a fallback, because the tech companies are pushing hard to make your purchases of hardware and software permanent subscription revenue producers. Soon, your software and hardware won't even work unless you are plugged into the internet. That's why I'm keeping my older software and the machines that run it all: They still do everything I need to run my business, no internet connection necessary. That's big folks. Think about it. The old stuff will be like gold in the future, unless you don't mind getting your wallet sucked on a monthly basis.
Open Source software is becoming increasingly useable, and you can usually avoid a hardware upgrade. Tech margins will half to GM/Ford levels in a decade.
the dow is up 135 pts now.
EVERYTHING IS AWESOME!!!!!
This is clearly bullish. The equity markets are telling you that today.
If they decided on the conference call last night that today is a short squeeze, then a short squeeze is gonna happen no matter how bad the news.
So stop building back doors into your chips then...
"The company believes the changes to demand and inventory patterns are caused by lower than expected Windows XP refresh..."
~That~ is unbelievable. And telling. I still use XP - because it just flat out works. Imagine that - 15 years and it still gets the job done. Meanwhile, my other machine that runs 10.6.8 (another OS that just flat out 'works'), is basically Fucked. But I still use it...
why not use ARM MLB?
I take a shit wether any chineese policeman reads my emails ( he cannot anyhow, I doubt he has my private pgp key.
Stop making commercials about how Intel powered 2 in 1 devices are approved by the TSA. No one likes the TSA.
There's just no reason for pretty much anyone these days to upgrade. Computers delivered 4 years ago are within 10-20% of the performance of the models delivered today. SSDs and cloud computing services prolong end-user system longevity significantly. Unless someone comes out with a new "killer app" over the next few years, Intel is going to have increasing difficulty moving product.