Thread regarding Intel Corp. layoffs

@2osk - The breakout of IOTG serves a few purposes:

• It's a growth engine, no matter what. Low overhead, increasing customer base, longevity in the market. IOTG has always had a decent story - it's just that it is SLOW growth.

• It fits into the narrative of diversification and new shiny directions. That's why it was renamed from ECG to IOTG about 3 years ago; to capture the Internet of Things mania. Unfortunately, they never were able to pull together a silicon story (think QSD) and the whole IOT push has devolved into pushing IOT gateways with Core CPUs and maybe some software. Tiny IA is dead.

• It makes nice copy and serves as distraction from the real issues.

I'm sure I'm missing a few. Either way, with all the SMG moves over the past year, the old Embedded sales force is pretty much dismantled, and IOTG will ultimately plateau as people finally get fed up with them and move to other solutions. AMD poses the greatest immediate threat, but long-life concerns will continue to push to other ARM-based vendors.

Why bother reporting a segment called Iotg which only resells products. Only 10 percent of Client Group revenue.

Intel is riding the 14nm fourth generation products wait till 10 piper has to be paid as well as the write downs on all the billions wasted, ala Clear and other moments of Gump moves

Intel growth and diversification is a mirage. Stock price and quarterly results carried on the back of overall economy and tech stock market rally not seen since the 90s. Another factor in profit improvement is the bone-deep cuts to employee benefits in the last few years.

Remember how things ended in the last tech bubble in 2000. When it happens, Intel will be in a precarious position, unlike the last 2 recessions where Intel managed to plow through.

OP here.

@rdd - None from you, of course

@fme - Agreed on IOTG primarily re-selling CCG/DCG product, with some variation and occasional tweaking. Target markets are far different from CCG, so this doesn't take away from client growth. While for IOTG it was a nice quarter, it has far more (embedded) competition and will never substantially grow - it's already a 35-yr business and hasn't cracked $1B/qtr

@bcr - I think it was the first question ~ 26:58 on the mp3, from Ross Seymour at DeutschBank. The Intel AI story is a re-marketing of the Intel Xeon stranglehold on the data center, followed by Nervana futures with very little detail.

Thanks for the responses, everyone.

Yes OP, all the analysts are stupid, and you are smart. What kond of substantive answer domyou expect to that?

IoTG is not a real business group.

It simply resells products from Client and DCG into various segments.

This cannibalizes Client group growth.

Then this must be your first visit here, @fll,

I thought this a board about layoffs not the Yahoo INTC stock forum

OP, good writeup. Agree on the debt issue. Any business would raise a red flag when debt raised from 2bil in 2010 to a staggering more than 13X in just 7 years. However, Intel very much remains Wall Street darling. Good news are exaggerated and bad news padded up, pushing the stock up. This due to the fact many funds are holding huge amounts of Intel stock. For a big company with USD60+bil in revenue, it's easy to move numbers around and make things look good. Things will continue to look good for another few more years. The party continues at Intel.

OP - Can you tell us approximately where BK's AI answer was in the call? Beginning, 20 min into, toward the end, etc.

Thanks!

Very well thought out and written OP. I actually have an enormous amount of respect for Stacy Rasgon, as he is one of the few analysts to call out BK on his bullsh-t.

"The PC market continues to be a challenge for Intel. Growth in the company's PC unit was flat over the previous year with $8.9 billion in sales for the quarter"

Sales will continue to slide especially with competition from AMD. Things are not as rosie as they seem.