Intel tops Q3 estimates

[mrmt]

http://files.shareholder.com/downloads/INTC/855360141x0x854359/AE39D10A-21FA-43B0-9E57-727EA7C29C8D/Earnings_Release_Q3_2015_5_.pdf

tel Reports Third-Quarter Revenue of $14.5 Billion, Net Income of $3.1 Billion
News Highlights:
• Quarterly revenue of $14.5 billion, above the midpoint of outlook; gross margin of 63 percent, consistent with outlook
• Quarterly revenue approximately flat year-over-year, with growth in the data center, Internet of things (IoT) and non-volatile memory businesses offsetting lower client revenue
• Results show customer enthusiasm for 6th Gen Intel® Core™ processors


(...)

Good quarter for Intel, with them gaining traction on other markets offsetting shrinking sales on clients.

I expect another bloodbath quarter for AMD.

 

[dark zero]

AMD? What is that? Intel is supposed to be the sole x86 processor vendor.

 

[ShintaiDK]

Quite amazing they can offset the entire client decline.

 

[jpiniero]

Actually it looks like AMD gained share. Intel sold 19% less on desktop and 14% on notebook. And then Tablet volume dropped 39%.... have they given up on it?

 

[AtenRa]

Q3 2015 compared to Q3 2014:
- Notebook platform volumes decreased 14%
- Notebook platform average selling prices increased 4%
- Desktop platform volumes decreased 15%
- Desktop platform average selling prices increased 8%
- Tablet platform volumes of 8 million units decreased 39%
First nine months of 2015 compared to the first nine months of 2014:
- Notebook platform volumes decreased 8%
- Desktop platform volumes decreased 18%
- Desktop platform average selling prices increased 6%
- Tablet platform volumes of 26 million units decreased 7%


2015 is turning to be the worst year for the PC market.

 

[ShintaiDK]

2015 is turning to be the worst year for the PC market.

Not just PC. Pretty much starting to be everything. Chinese imports down 20.4% in september, down 13.8% in august. Exports also going down fast. And next year smartphones may begin their decline.

Consumers got too little money and too much debt in average all over the world. 0% interest rates and no real growth. The destructive power of finance capitalism.

 

[Spungo]

Good quarter for Intel

Page 2 of your linked PDF:
Net income for Q3 is down 6% compared to last year.

Page 7:
Net income for Q1-3 is down 3% compared to last year.

It's also annoying how they're blatantly trying to mislead people about their margins. Every company does this, and it's disgusting. Gross margin tells me absolutely nothing about this company. You paid $1 for silicon and you sold it for $2? That's great, but how much did everything else cost? How much did marketing cost? How much did R&D cost? Where do depreciation and amortization factor into this?
Intel's actual profit margin is more like 21%. That's a very good margin, and Intel is an excellent company to invest in, but it would be nice if they would stop lying to us.
Note: the above link is for Q2, and it shows a similar trend as Q3. In Q2, YoY dropped 4.6%. That doesn't mean the company is dying. It just means the global economy is slowing down, so you can expect this company's share price to drop with it.

Consumers got too little money and too much debt in average all over the world. 0% interest rates and no real growth. The destructive power of finance capitalism.

Behold the power of central planning! I don't know about you guys, but we were told in school that central planning doesn't work, and that was the reason USSR failed. What are we doing all around the globe? Central planning and lots of it. 0% interest rates, QE1, QE2, QE3. Negative interest rates in Europe. Coming as a shock to absolutely nobody, it's not working. The property bubble in London is so ridiculous that people are living in shipping containers because rent is unaffordable. The same thing is happening in San Francisco.

 

[ShintaiDK]

Samsung Electronics should also post their 8 quarter in a row with decline.

 

[dark zero]

Not just PC. Pretty much starting to be everything. Chinese imports down 20.4% in september, down 13.8% in august. Exports also going down fast. And next year smartphones may begin their decline.

Consumers got too little money and too much debt in average all over the world. 0% interest rates and no real growth. The destructive power of finance capitalism.

I would say that is Intel and AMD incompetence. AMD Carrizo ended to be a flop, Intel Skylake killed Broadwell and the hype of the fans and Cherry Trail was a massive dissaster, except for Atom.

The only good thing is the real Quad Core from Intel. Oh and the Pentium with HT

 

[frozentundra123456]

Political commentary aside, the market is simply mature for PC, tablets are becoming that way, and pretty soon, smartphones. The growth phase is over, pretty much everyone who really wants one has a tablet, PC, or smartphone, at least in the US where I live. And they have become "good enough" as well, so that there is no real need to upgrade, except to "keep up with the Joneses" as they say.

I agree though, that soon smartphones are going to take a hit as well, especially as carriers provide less subsidies and stop hiding the real cost in the service plans.

Makes you wonder though, if all the money Intel dumped into mobile was worth it. By the time they get out products that dont require contra revenue, and have good connectivity, the ship will have already sailed.

 

[ShintaiDK]

I agree though, that soon smartphones are going to take a hit as well, especially as carriers provide less subsidies and stop hiding the real cost in the service plans.

Makes you wonder though, if all the money Intel dumped into mobile was worth it. By the time they get out products that dont require contra revenue, and have good connectivity, the ship will have already sailed.

Its about who survives. Qualcomms stockholders is already displeased with their declining share and have aired the view about a split up. But for everyone a higher and higher volume is needed. That's also why you see ARM companies merge.

 

[Spungo]

Samsung Electronics should also post their 8 quarter in a row with decline.

Maybe they should start a club. Companies Cratered by Central Planning. CCCP.

Here's the bellwether of global construction, Caterpillar:

I would say that is Intel and AMD incompetence.

Nope. The problems in China are enormous. I complain all the time about how screwed up the US is, but that's nothing compared to China. In the US during our last real estate bubble, people were buying and building condos that nobody lived in. China built entire cities that people don't live in. They had an epic real estate bubble that crashed. After that was an epic stock and bond bubble that crashed. This crash has affected everything. Copper prices have crashed, coal crashed, iron crashed, zinc crashed, uranium crashed, oil crashed. Everything is crashing.

 

[ShintaiDK]

Cheap money means people borrow for crap and end up debt locked. I can see the same here in Denmark. Huge housing bubble that can burst anytime. And no jinglemails here, its debt for life. This is the essence of the global downturn in electronics and everything else outside the daily need. Average global consumer joe dont have much money to spend. And we may see companies shrink another 50% in client products before a turn.

 

[Arachnotronic]

Page 2 of your linked PDF:
Net income for Q3 is down 6% compared to last year.

Page 7:
Net income for Q1-3 is down 3% compared to last year.

It's also annoying how they're blatantly trying to mislead people about their margins. Every company does this, and it's disgusting. Gross margin tells me absolutely nothing about this company. You paid $1 for silicon and you sold it for $2? That's great, but how much did everything else cost? How much did marketing cost? How much did R&D cost? Where do depreciation and amortization factor into this?
Intel's actual profit margin is more like 21%. That's a very good margin, and Intel is an excellent company to invest in, but it would be nice if they would stop lying to us.

What on Earth are you rambling about? Intel very clearly discloses their operating expenses, operating income, and net income in their financial statements. There is nothing "misleading" in the way that these numbers are being reported.

 

[Arachnotronic]

Samsung Electronics should also post their 8 quarter in a row with decline.

Samsung actually pre-announced a pretty big rebound thanks to their chip biz.

 

[Arachnotronic]

Actually it looks like AMD gained share. Intel sold 19% less on desktop and 14% on notebook. And then Tablet volume dropped 39%.... have they given up on it?

I don't see how AMD could possibly have gained share given the revenue guidance they issued.

 

[ShintaiDK]

More likely AMD lost more of the tiny share they had.

 

[Leo9]

Samsung Electronics should also post their 8 quarter in a row with decline.

Not really.

SEOUL— Samsung Electronics Co. estimated its third-quarter operating profit rebounded sharply from a year earlier on robust sales of chips and displays used in mobile phones and other gadgets.

The South Korean technology company said Wednesday its operating profit for the three months ended Sept. 30 likely rose 79.8% to about 7.3 trillion Korean won (US$6.3 billion), its first year-over-year growth since the third quarter of 2013 when the company posted a 26% increase. Revenue likely rose about 7.5% to 51 trillion won.

http://www.wsj.com/articles/samsung-sees-third-quarter-profit-rebounding-1444176912

 

[ShintaiDK]

Samsung actually pre-announced a pretty big rebound thanks to their chip biz.

Amazing. Will be interesting to see if they can hold it. Or the decline will start again.

 

[NTMBK]

Tablet shipments down 39% year on year. Withdrawal of contra revenue went well, I see.

 

[ShintaiDK]

Tablets is just a nightmare section now. Even Apple had something like 18% drop YoY. And there is still contra revenue.

 

[witeken]

Tablet shipments down 39% year on year. Withdrawal of contra revenue went well, I see.

You mean the replacement of quadcore Bay Trail with decent graphics for 28nm dualcore SoFIA...

I wouldn't expect anything interesting from Intel until 7nm (smartphone + tablet).

 

[Arachnotronic]

You mean the replacement of quadcore Bay Trail with decent graphics for 28nm dualcore SoFIA...

I wouldn't expect anything interesting from Intel until 7nm (smartphone + tablet).

Intel basically admitted that they're significantly scaling back their mobile efforts on the call. It's subtle but it's there.

 

[Arachnotronic]

Tablets is just a nightmare section now. Even Apple had something like 18% drop YoY. And there is still contra revenue.

The tablet market is really a bad place to be. Intel sure picked a great time to get in on the tablet action :thumbsup:

 

[NTMBK]

Intel basically admitted that they're significantly scaling back their mobile efforts on the call. It's subtle but it's there.

Hopefully they do better in IoT.