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Thread: News - Intel beats expectations with record Q3 earnings

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    News - Intel beats expectations with record Q3 earnings

    "Our strategy is working," says CEO Brian Krzanich.
    Read more.

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    root Member DanceswithUnix's Avatar
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    Re: News - Intel beats expectations with record Q3 earnings

    " the firm's mobile and communications group posted an operating loss of $1.04 billion on revenue of just $1 million"

    Wow. Just wow.

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    Re: News - Intel beats expectations with record Q3 earnings

    " largely due to subsidised costs for manufacturers who use Intel chips in tablet devices "

    Is this a nice way of saying "Here! Have all this money and just use our chips." Or am I just cynical.
    Of course I'm perfect you just need to lower your expectations.

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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by Attila the Bun View Post
    " largely due to subsidised costs for manufacturers who use Intel chips in tablet devices "

    Is this a nice way of saying "Here! Have all this money and just use our chips." Or am I just cynical.
    Well it's the same as AMD probably did for its chips in the game consoles, or Sony & MS do to get exclusives for themselves. Loss leading is very common across nearly all industries.

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    Sprouts are not food Attila the Bun's Avatar
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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by kalniel View Post
    Well it's the same as AMD probably did for its chips in the game consoles, or Sony & MS do to get exclusives for themselves. Loss leading is very common across nearly all industries.
    So Yes! I am being cynical but then as far as I'm concerned "loss-leading" is just a polite way of saying bribery.
    Last edited by Attila the Bun; 15-10-2014 at 11:18 AM.
    Of course I'm perfect you just need to lower your expectations.

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    Banhammer in peace PeterB kalniel's Avatar
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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by Attila the Bun View Post
    So Yes! I am being cynical but then as far as I'm concerned "loss-leading" is just a polite way of saying bribery.
    You don't have a mobile phone then?

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    Re: News - Intel beats expectations with record Q3 earnings

    Funny thing is, Intel up against the windmills don't procure a better chip than Snapdragon, so they have to plunge their way in. There is such a big market subsidizing Intel's write-offs I don't think they care.

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    Seething Cauldron of Hatred TheAnimus's Avatar
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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by kalniel View Post
    You don't have a mobile phone then?
    Pretty sure he has an ARM one!

    The thing is Intel see this as a growth area, it's worth loosing a billion now in order to learn the lessons. I'd love an x64 phone that has the battery life I'd expect from an ARM device. Windows 10 could make this realistic enough, that I could run all my apps happily in the background. However this kind of CPU doesn't exist today, but the reviews of the new M chips appear to suggest that the gap is really closing.
    throw new ArgumentException (String, String, Exception)

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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by TheAnimus View Post
    Quote Originally Posted by kalniel View Post
    You don't have a mobile phone then?
    Pretty sure he has an ARM one!
    And assuming it's on contract (or even bought as a PAYG package), it's a loss-leader. Or a bribe, as Atilla would put it The money is made back on contract payments or call charges.

    More interesting to me is that that group includes communications, which makes me wonder exactly which chipsets it covers. If that includes Intel wireless adapters, it's more surprising given they're included in many laptops so should be doing well (unless their usage in Intel-powered laptops is also subsidised). That could be much wider ranging than them just "giving away" Atom chips to tablet makers....

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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by kalniel View Post
    You don't have a mobile phone then?
    I do see your point kalniel I think the word I should have used in this case is bludgeon. Anyone prepared to sacrifice 1.4bn that obviously can't be accused of bribery.
    Of course I'm perfect you just need to lower your expectations.

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    Re: News - Intel beats expectations with record Q3 earnings

    The idea that mobiles are based on an architecture anyone can license sounds like a far more reassuring future than a huge corporation dictating chip spec and prices. (Unless I'm being incredibly short-sighted) I really hope Intel do not make large inroads into mobile chips.

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    Re: News - Intel beats expectations with record Q3 earnings

    Intel needs to build market share in mobile in order to encourage software support.

    Without software support there is no chance of selling hardware.

    Short-term pain for long-term gain.

    I'm just surprised Intel aren't pushing harder to get x86 chips in the iPad and iPhone to really force the issue.

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    Re: News - Intel beats expectations with record Q3 earnings

    "Our strategy is working," says CEO Brian Krzanich.

    So what was this strategy that brought the rise in desktop PC sales, which wrong footed all the analysts?

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    root Member DanceswithUnix's Avatar
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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by scaryjim View Post
    And assuming it's on contract (or even bought as a PAYG package), it's a loss-leader. Or a bribe, as Atilla would put it The money is made back on contract payments or call charges.
    That really isn't the same. Carriers give you hardware, along with a contract that guarantees they get the money back over a couple of years. In the case of pay as you go they might be taking a small risk that they are subsidising you £20 on the handset cost and you will stay the few months it takes to get that back. So that is more of a loan.

    That is a far cry from giving hardware away to the tune of $1B that they will never see back, in the hope that other CPU companies will be driven out of business and in the long term they can go back to being a monopoly and hike their prices right up. I really can't see any other justification.

    Quote Originally Posted by Michael H View Post
    Intel needs to build market share in mobile in order to encourage software support.

    Without software support there is no chance of selling hardware.

    Short-term pain for long-term gain.

    I'm just surprised Intel aren't pushing harder to get x86 chips in the iPad and iPhone to really force the issue.
    Intel have already done the software support bit though. Unlike MIPS they have an ARM emulation layer that exists for the cases where native code isn't there. On top of that I expect the new Android Run Time system will help non ARM platforms compete through making native code less important. Intel have dangled enough carrots to demonstrate the ecosystem is there. People just don't care for it in their Andriod devices.

    As for Apple, I am just surprised they haven't made a proper ARM based laptop yet. I am convinced it is on the cards.

    Edit to add: It looks like the GHz war is back.

    http://www.dailytech.com/Motorola+Dr...ticle36720.htm

    I'm guessing 48 hours battery and 2.7GHz are not at the same time
    Last edited by DanceswithUnix; 15-10-2014 at 02:53 PM.

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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by Michael H View Post
    I'm just surprised Intel aren't pushing harder to get x86 chips in the iPad and iPhone to really force the issue.
    Intel would have to offer Apple a very, very good deal before this happens as Apple have invested big time in their own custom ARM SoC (which is currently probably the fastest ARM processor) and Apple would be fools to give up the control this gives them. Ditto Samsung and the other big players. The big players realise that $1billion per quarter in bribery is probably not worth it. After all, they and most Taiwanese OEMs are long used to being leaned on by Intel.

    Thing is, unless the rules have recently been re-written, dumping is illegal in most jurisdictions. And $billions of 'contra-revenue' sure sounds like dumping to me. In the end this is not to dissimilar to what Intel had to settle because of anti-competitive practice vs AMD and Nvidia. Intel are clever though: by settling before the EC and other forced them to, the avoided the automatic fines for repeat offences like happened to Microsoft when they withdrew the browser ballot.

    Quote Originally Posted by DanceswithUnix View Post
    As for Apple, I am just surprised they haven't made a proper ARM based laptop yet. I am convinced it is on the cards.
    Yes, the Macbook Air or a iPad Pro seems likely at some point. No point in having the best performing ARM processor and spending all that money on its design and not try and take some of the profit which Intel is currently getting. Or even, just use a Macbook Air Lite to get better prices from Intel.

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    Re: News - Intel beats expectations with record Q3 earnings

    Quote Originally Posted by RobbieRoy View Post
    "Our strategy is working," says CEO Brian Krzanich.

    So what was this strategy that brought the rise in desktop PC sales, which wrong footed all the analysts?
    Erode AMD's profit margins to the point they have to sell all their assets just to stay in the game.
    In the past few years AMD have sold all of their manufacturing plants and they even sold their HQ and are currently renting it back!

    As for mobile market, android is ideal as it's not particularly platform specific, it runs on different typres of ARM chips that are chalk and cheese, asus and lenovo have been making a fair few intel powered tablets as well at moto, they're actually really quick for the most part

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