Why is it that almost no one believes in the recovery of this company anymore?
14 replies (most recent on top)
correction... ASG died March 2016 (not 2015)
When ASG died in 2015 stock was trading around $35 / share... now it's $28... RIP Andy.
somewhere, Andy Grove is spinning in his grave. Meanwhile, Jerry Sanders is laughing his a-s off in his old age.
@1bnc+1kTk3yEn thanks yes, I agree Infineon destroyed a lot of cash...
and there are lots of other phone strategy and acquisition sc--w ups... sad thing is, Intel was in early position on app processors for phone well before the Infineon deal and ki-led it before smart phones ever took off... then, in round two Intel tried to compete in smart phones with x86... good lord how d-mb was that... all this before Infineon deal even happened. I get sick to my stomach even re-hashing this in my brain.
@jin+1kTk3yEn. Well said. One notable acquisition was Infineon Wireless in 2010/11, they didn't even have a 4G modem at that time, continued to struggle and failed to catch up with the competitors. MR was hired to deal with it in 2015, another complete failure that led to the exit of the wireless business in 2019 after losing $10+ billions.
You forgot begging US and EU governments for handouts to build capacity for what we don’t know
Why is it that almost no one believes in the recovery of this company anymore?
- core business is mature
- losing share in core business to AMD
- company cannot grow new businesses
- company failed in most every one of the acquisitions attempted
- x86 under siege by by direct and indirect competitors using ARM which is superior mips/watt
- Ridiculously risky strategy to compete directly against TSMC, a more capable competitor with lower cost structure who is 3 decades ahead of Intel on ecosystem & experience in fab business
- Arrogant executive who spend more time bloviating then executing.
The number 1 problem at Intel is a multifaceted culture problem that they spend 20 years getting themselves into. Hard to see how we turn that around. I this this especially true with the way culture has gone in the US. Think what would would happen if they had the 10% solution from the early 80s today, half the staff would bail.
How do you F-up a monopoly?
This will be studied in business schools across the world as a lesson in what not to do.
Pat has been on the job for 2 YEARS.
Are there any tangible metrics for improvement?
The stock price is signaling disaster with no turnaround in sight.
@rxp Pat has admitted to tons of problems. Many, many times. Try listening.
Even I had the foresight to tell where Intel is heading wrong. But the system in Intel has the great leadership from Principal Engineers to Fellows, VPs and so on that never listened but left us on the wayside. Admission of mistakes is never in the genetic makeup of Intel. It is the herd mentality. If you keep chanting the same rhetoric, mantra - somehow it will end up good. There is no bottom in sight for Intel.
Fast turnarounds in big tech require visionary leadership that is rare to come by. I’ll leave it as an exercise for the reader to determine whether Intel has such leadership.
To fix a problem you first need to admit one exists. Pat is stubbornly refusing to do so.