PCs on Track for 11% Shipment Decline This Year, Based on Q3 Trends, Says BMO
Http://blogs.barrons.com/techtraderdaily/2016/08/04/pcs-on-track-for-11-shipment-decline-this-year-based-on-q3-trends-says-bmo/
10 replies (most recent on top)
About as retarded as the wil.i.am campaign, @3rly. That was definitely a WTF moment
PC does whaaaaaaaaaaatttttt???
Retarded ad campaign
You can't say Intel is not deserving of this outcome.
There is a reason phones are front of the store and PCs in the very back. PCs are like milk at the grocery store you need it but beyond that not any glamour in them. Nobody cares what brand, how much memory or how fast anymore, they all pretty much work. Intel after 20 years still has failed to find any growth outside of x86.
Frankly if IBM had picked the 6800 or Z80 intel wouldn't much of anything but I think it is on that trend at the moment, LOL
Go into any Best Buy or target or Costco and ask the salesmen how PC sales are doing. It's a grim reality.
The clock is ticking.
As PC revenues drop, Intel has less and less runway to invest in new growth.
I think we all know how IoT 5G and Memory are going to turn out LOL!
Hockey puck stick growth is every new business dream, IoT, 5G, memory, LOL.. till you reach then inflection point and nothing happens.. good luck with them forecasts!
Sadly server didn't meet expectation and with global slowdown and all the cloud services looking at their huge capital spends I think ARM already has a compelling solution and the ARMy is taking x86 down in another arena. Sadly senior executives have all risen on the backs of x86 and only know intel and as such have little appreciation for how the outside world works.
The problem is not just a 10% drop in pc sales. Intel has shown analysts that they can sustain 10% drop in pc sales if they hit projected growth in other areas. That is the reason the stock is still holding. The real issue would be if other area dont achieve expected growth. So far the trend that has been the saving grace is that pc sales have not dropped by expected amount compensating for lack of expected growth in other areas. In a quarter where both shoes fall the spiral will accelerate until then things will continue to meander. I would like intel to do well and their best hope is s top managemnet change. The later it comes harder it gets to recover until then the employees jobs are a gamble
I feel sorry for those at Intel to paralyzed to leave, their inactions will result in huge personal and family pain in the coming years when the huge additional cuts are made and the larger job market small and saturated with desperate TMG and Product people looking for jobs.
I feel bad especially for the TMG as their silicon fab skills are only applicable in a very very small slice of the industry and that industry is all in the Far East for the most part.
With the like 8th quarter of sales drop on track for likely 10-12 quarters before bottom out at 200 Million units will be UGLY. Doing my napkin math of installed PCs transition to phones the world doesn't need too many high performance PCs, just a connection to the cloud
The cloud business is very lucrative for intel, but the total volume and revenue growth isn't enough to offset the huge drop in client, nor the huge cash burn in IoT, memory and modems. BK will tell everyone about the huge % growth in IoT, modems etc. etc. but go see what the total revenue and profits are, they simply don't add up to anything that can compensate for the huge drop in client. All the client folks from the PC end sellers, board makers, chip makers will need to goose sales, how do they do that, with PRICE DROPS. Yup on 14nm and 22nm products they will drop the price, MARGINS go done, COST must go down, means consolidation of people, sites, etc, MORE LAYOFFS are coming.
Get your linkedin resume ready and when you jump be ready with the next big layoff to find the water full of already screaming people all looking for a job!
No need to worry, IoT and 5G will fuel Intel's growth...LOL!