Intel lost $929mn on mobile in Q1 '14

[NTMBK]

Yikes.

 

[tential]

Market only cares that they hit earnings expectations. That loss is considered an investment into getting their foot in the door for future sales.

It would be more of a concern if Intel was completely ignoring mobile all together.

 

[easp]

Very interesting...

 

[NTMBK]

On the plus side, PC Client Group is up YoY. Hopefully that is due to a rebound in the PC market in general, though it could just be Intel hoovering up the remaining AMD market share. (Don't know the overall picture.)

 

[R0H1T]

So they've sunk $ 3B into the mobile division last calendar year, anyone else think this is unsustainable even for Chipzilla !

 

[tential]

So they've sunk $ 3B into the mobile division last calendar year, anyone else think this is unsustainable even for Chipzilla !

And yet even after seeing these numbers INTC is up 1.05% in after hours trading.

So am I worried? No because obviously it's not a long term plan to continue to lose money

 

[R0H1T]

And yet even after seeing these numbers INTC is up 1.05% in after hours trading.

So am I worried? No because obviously it's not a long term plan to continue to lose money

Pretty sure none of those stock traders/buyers have a clue that Intel will give them another massive heart attack later this year, certainly with the way things are shaping up at Intel D:

 

[moonbogg]

Good. Maybe they will forget about mobile and focus more on reinventing the desktop.

 

[ShintaiDK]

Good. Maybe they will forget about mobile and focus more on reinventing the desktop.

Its expected contra revenue. Its nto a surprise.

And by mobile it means tablets and smartphones. Not laptops.

 

[tential]

Pretty sure none of those stock traders/buyers have a clue that Intel will give them another massive heart attack later this year, certainly with the way things are shaping up at Intel D:

Yes, not a single trader was capable of seeing Intel's loss in the mobile sector. They just completely ignored it.

If you weren't so adverse to the stock market I'd say go ahead and join in since you clearly know more than every single trader out there.

 

[R0H1T]

Yes, not a single trader was capable of seeing Intel's loss in the mobile sector. They just completely ignored it.

If you weren't so adverse to the stock market I'd say go ahead and join in since you clearly know more than every single trader out there.

Well for one I'm not from the states & two I have real estate which gives me at least 2x the returns expected from any of the major stock markets in the world this year.

 

[tential]

Good. Maybe they will forget about mobile and focus more on reinventing the desktop.

You think that as a corporation you should focus on a shrinking market, rather than a growing market?

Not sure if you're serious or just joking and saying that you want faster chips for desktop because you're an enthusiast and couldn't care less about a company's long term viability.

 

[Abwx]

So 156m revenue for 1.085bn being the cost of revenue, that s products sold at barely 15% of their production costs, i guess from the other thread that it s better to sell off at 5$/chip , with 40m chips that s 200m saved from a sinking boat that would be otherwise depreciated down to zero $ as times goes by ...

Edit : From TR :

"In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014," said Intel CEO Brian Krzanich.

Not sure that stockolders are willing to support even more of this "progress"..

http://techreport.com/news/26324/intel-reports-first-quarter-financials

 

[GreenChile]

Run for the hills!!
Intel is not profitable on smart phones and tablets yet!
This is a clear indication they are DOOMED!
AAAAHHHHH!!!

Seriously? Is it really a big deal? Revenue and operating income are up from a year ago.

 

[SViscusi]

Good. Maybe they will forget about mobile and focus more on reinventing the desktop.

Are they doing something wrong on the desktop? They produce some damn fine chips. The only room for improvement I can see for them in the desktop market is in the iGPU area but without them also being able to use that type of improvement in the mobile sector thus justifying it's R&D, I don't see them doing that.

 

[witeken]

Market only cares that they hit earnings expectations. That loss is considered an investment into getting their foot in the door for future sales.

It would be more of a concern if Intel was completely ignoring mobile all together.

Exactly, this article that says that Intel should give up mobile wasn't received very well: Intel: Please Give Up On Mobile.

 

[Phynaz]

So 156m revenue for 1.085bn being the cost of revenue, that s products sold at barely 15% of their production costs, i guess from the other thread that it s better to sell off at 5$/chip , with 40m chips that s 200m saved from a sinking boat that would be otherwise depreciated down to zero $ as times goes by ...

Convenient for you to ignore that Intel said the majority of loss isn't from the selling price of the chips but from R&D costs of future products. Let's go check and see if you posted the same foolery when AMD was posting losses, shall we?

It takes a lot of money to break into new technology markets. But you know this.

 

[blackened23]

LOL @ this thread. Intel spends money on R+D. Must make thread. Going to bookmark this for my daily dose of comedy when you consider the context of the financials of that other opposing corporation. Cuz it's us versus them. Right.

Approx. 2 billion in profit, 2 billion in the war chest. Yeah intel spends money on R+D. I guess with 2 billion in profit, Brian C. will have to downsize from buying 3 private jets annually to just one. Sucks. What can ya do. Sucks when you only make 2 billion in profit as a corporation.

 

[RU482]

and then they doubled down...Free Bay Trail for everyone!!!

 

[tential]

LOL @ this thread. Intel spends money on R+D. Must make thread. Going to bookmark this for my daily dose of comedy when you consider the context of the financials of that other opposing corporation. Cuz it's us versus them. Right.

Approx. 2 billion in profit, 2 billion in the war chest. Yeah intel spends money on R+D. I guess with 2 billion in profit, Brian C. will have to downsize from buying 3 private jets annually to just one. Sucks. What can ya do. Sucks when you only make 2 billion in profit as a corporation.

These were the same people saying doom and gloom on the original Xbox when it released at a loss year after year. Microsoft is still here.

Intel taking a less than 1 billion dollar loss to get into Mobile? That's MUCH less than the losses many other companies have taken to get into new markets. This is why Intel Stock didn't tank today and the ONLY people who are worrying about this are tech geeks who are playing favorites with their companies.

Serious analysts are not worried over this at all. They're thinking "Is Intel's chips viable long term and can they secure vendors." The answer to both questions is yes. It's simply a matter of time.

 

[Phynaz]

LOL @ this thread. Intel spends money on R+D. Must make thread. Going to bookmark this for my daily dose of comedy when you consider the context of the financials of that other opposing corporation. Cuz it's us versus them. Right.

Approx. 2 billion in profit, 2 billion in the war chest. Yeah intel spends money on R+D. I guess with 2 billion in profit, Brian C. will have to downsize from buying 3 private jets annually to just one. Sucks. What can ya do. Sucks when you only make 2 billion in profit as a corporation.

Gonna be great hilarity when AMD posts their mobile income on Thursday.

Oh wait, that would be Qualcomm now. Another genius move by AMD.

 

[Arachnotronic]

Gonna be great hilarity when AMD posts their mobile income on Thursday.

Oh wait, that would be Qualcomm now. Another genius move by AMD.

AMD's earnings calls are always comedic gold.

HSA, anyone?

 

[OVerLoRDI]

Internet of Things group? Off to Google

 

[shady28]

On the plus side, PC Client Group is up YoY. Hopefully that is due to a rebound in the PC market in general, though it could just be Intel hoovering up the remaining AMD market share. (Don't know the overall picture.)

Their profit went up on the PC Client side, but their revenue went down.

That implies higher margin, lower sales volume. AMD probably factors in as it becomes increasingly less competitive on traditional desktop platforms, Intel doesn't have to compete on price so much.

 

[piesquared]

AMD's earnings calls are always comedic gold.

HSA, anyone?

Your articles on S/A, no wait the Fool are always comedic gold.