Intel lowers pricies.

[Nemesis 1]

Originally posted by: Wreckage

Originally posted by: Nemesis 1
Whats with your link . pretty bad report .

It's called news and facts. Go read the press release on Intel's site.

So my link did you no good . I read the report the day it came out . And had A laugh . I knew some would think like you. Heres how it works. Clearwires stock went down . On paper Intel lost 950 million dollars so they wright it down . If clearwire went up alot . Intel would claim a gain on the same stock . But its a paper gain only . Until intel sells that stock its all paper. If they sold the stock than it would be a real loss . But thats not what happened. Look this isn't about whos right or wrong Ok. But intel in fact gained 1 billion 300 million last qt . Real money not Paper. I am pretty sure everone understands that but you. So just stop I will do the same,

 

[Wreckage]

http://money.cnn.com/2009/01/1...postversion=2009011521

Intel Corp. reported a 90% drop in fourth-quarter earnings Thursday that were in line with Wall Street's reduced expectations, as demand for semiconductors remains weak. The Santa Clara, Calif.-based company reported net income of $234 million, or 4 cents per share, for the three months ended Dec. 27. That's down from earnings of $2.27 billion, or 38 cents per share, in the year-earlier period.

The money they took in dropped 90%.

 

[a123456]

Originally posted by: Wreckage
The money they took in dropped 90%.

There's no arguing that the money they took in dropped from 2.27B to 234M, but I think what Nemesis was trying to say was that a lot of the drop was from stuff not related to their sales.

If you take a look at their actual income statement, their sales are not down 90% at all. It's down from 10.7B to 8.2B.

Their operating income went down from 3B to 1.5B. Then their equity investments that they made with their 10B+ in cash (probably invested in the falling stock market/bonds or something like that) lost 1.2B in value.

So, yes, they lost a lot of money but most of "90%" didn't deal with their product sales or other sales but rather bone-headed decisions with investing their extra cash. Of course, during the good times of the stock market, their net income increases more than usual with the increase in value of their investments also so it works both ways.

Honestly, the whole thing probably doesn't matter that much. I'm just glad as a consumer that CPU prices are down across the board at both Intel and AMD. As an investor, of course, it's not good but that's another story.

 

[Roy2001]

Originally posted by: Wreckage

Originally posted by: Nemesis 1

Originally posted by: Wreckage
After their profit was down 90% I imagine they are trying plug some holes in the dam.

Hopefully some of the older quads will drop in price on eBay.

Yep profit was down 90% on paper only . Intel still put over 1 billion in their pockets. Most of us understand that.

http://news.cnet.com/8301-13924_3-10143402-64.html

Intel reported Thursday a 90 percent drop in net income for the fourth quarter, as the company continued to cite an "uncertain" environment.

Note there is one time One Billion dollor write of. It won't happen every quarter.

 

[Twofootputt]

Originally posted by: garritynet
Nemesis 1- I like how you have a dictionary entry for a sig but some of the worst spelling on this forum. AMD can lower their prices next week when Intel dose and stay competitive. No one lowers their prices in anticipation of a competitors price cut.

If you're going to call someone out for misspellings, it might be incumbent on you to check your own.

Back to the thread: Q9650 drop is making me rethink i7.

 

[Idontcare]

Originally posted by: garritynet
No one lowers their prices in anticipation of a competitors price cut.

It is not unheard of, and spokesmen even officially recognize it as a practice on occasion:

More Intel price cuts coming

Although AMD may adjust its prices, the company will not likely make major cuts on the K6-2 line, which competes directly with the Celeron. AMD cut prices on these chips on May 14 in anticipation of the June 6 cut from Intel, the spokesman said. Under the current AMD pricing schedule, K6-2 prices appear to be comparable to Intel's upcoming prices.

http://news.cnet.com/More-Inte...100-1040_3-226450.html

This link is dated but it proves the point and is relevant to this very subject (same industry, same competitors, same product under discussion). QED.

Reports: Intel CEO says 1st loss in 22 years possible

Chief Executive Paul Otellini told employees last week that the company could see its first quarterly loss in 22 years in the company's first quarter, according to reports on Tuesday.

http://sanjose.bizjournals.com...daily26.html?ana=yfcpc

Does not bode well. If it is true then executive management will have tremendous pressure from major shareholders to reduce headcount.

If the balance sheet is looking to be worse now than when Otellini let go some 10,000 employees in 2006 then there is no practical way he could justify failing to take similar or even more drastic corrective action in Q1.