Let's look at the sensitivity analysis of Intel losing market share to amd. For arguments sake let's assume 10% loss of market share in x86. Since Intel earns $56bn from these markets let's assume $5.6bn - No big deal right? Intel has an average gross margin of 60% approximately $3.4bn of operating income. Intel recently fired 12,000 people just to save $1.4bn a year. So just a small loss in market share might equate to 36,000 layoff in 2017.
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Stacy should stick to haiku because that makes more sense versus Intel's current direction...
It's not just unit share but dollar share as well.
Intel will need to lower prices to compete with Zen.
"It could get a lot worse" you are joker! It WILL get a lot worse.
1). Two more generations of client on 14nm which means no process power, performance or cost improvement. Not a big deal as demand is falling so fast Intel will easily be able to support o. Under loaded 14nm factories
2). 10 will bust cost with low yield and poor performance
3). Continued drop I PC demand will mean price drop and revenue drop and GM reduction
4). IoT, modem, and other initiates are margin busting!
Expect big layoffs in 207 and 2018!
Yeah. The layoff of 30+ K useless employees sounds about right.
Then factor the cost of 10nm yield and DPW of that to GM will be eyepopping. The required cost of staying on 14nm with much larger than expected die for two more designs and Stacy will need more than haiku to explain the situation, LOL
I don't know but considering my 20,000 shares of AMD I bought at $2 awhile ago now sits at 7.60/share, I just hope AMD has successful launch with Zen. 2017 is sort of late but better than never I guess. It would be nice to see a $20/share price.