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Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

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Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#71

Post by billyhoffman »

IBM wrote: post #41

I think if there's any time Apple would switch to their own ARM designed chips for Macs, it's now. This along with Intel slowing down from their Tick-Tock schedule will probably do it.

Why? The POWER->x86 jump was made largely because of the need to have more performance from the chips (raw power) and better performance per watt (for laptops). Intel wooed Apple on what they had available at the time as well as the impressive roadmap of where the they going. I often get 10 hours of battery life on my Macbook pro, so they did something right!

I totally think Apple will go to ARM, but I can't see Apple doing shift until OS X is getting similar performance on ARM over x86. When Job introduced the x86 switch, he said they had had an internal version of OS X running x86 since day 1. I'm sure they have a version on ARM as well right now, and are just waiting for them to get "good enough". Apple's marketing on recent iOS devices has been also very interesting. Lots of use of the phrase "Desktop Class". Also, the GeekBench scores, and AnandTech teardowns support the hype: Apple's ARM chips truly are best-in-class and rapidly approaching mainstream x86 performance.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#72

Post by bduerst »

malchow wrote: post #67
5ilv3r wrote: post #49

Earlier quoted context omitted.

How much of your time is now on a mobile that used to be on a desktop? Their core business is drying up.

Am I the only person for whom the answer to this question is "almost none?" I'm serious: about 80% of my day is meeting with real people in the real world. Mobile phones haven't changed that. The other 20% of my day is sitting at my desk creating original work product (mathematical models and thoughtful memoranda) or reviewing the work product of others. Mobile phones haven't changed that, either. No doubt the drough…

Yeah, mobile hasn't figured out a good way to take over the workspace. Some of the tablet/laptop hybrids are getting closer.

As for entertainment though, are you watching Youtube extensively on your desktop?

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#73

Post by r00fus »

robertelder wrote: post #38

I'm not sure how much of an effect this would have, but from a consumer's point of view, there isn't as much of a reason to buy a new PC every few years anymore. The laptop I'm using right now was purchased in 2011, and the prices in stores now are very comparable to what I paid back then. I've made up my mind to buy a new one a few times, but then when I go to the store, it just isn't worth it.

So Intel has had decades to become more than a PC parts manufacturer (albeit largest one ever).

The issue is creating compelling reasons for buying a new PC. Intel/Microsoft have not been very successful at promoting those sales-drivers.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#74

Post by mturmon »

theandrewbailey wrote: post #37
anilshanbhag wrote: post #20

One must understand that this is re-structuring. Intel is probably letting go of some divisions it no longer intends to pursue. In the not-so-distant past, Microsoft did an internal re-structuring when Satya Nadella became the CEO. It isn't as bad as it is portrayed to be as most people end up getting re-hired in other groups or take the severance and join a new company.

News like this out of the blue is strange. I was pretty sure that the post-PC era was a sham. It still is, right?

You can blame it on the end of Moore's law, or you can blame it on mobile computing. (The two are not unrelated.) But it is fundamental.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#75

Post by adrenalinelol »

dntrkv wrote: post #54
tma-1 wrote: post #39

So Intel is cutting 11% of its workforce, Goldman Sachs just reported a 56% drop in profits, Morgan Stanley had a 50% drop in profits, Netflix missed subscriber growth estimates etc... yet, the Dow just hit a 9-Month high, and the S&P500 is now above 2100. The whole market is overvalued, not just the tech unicorns.

If you pick and choose stocks, you can tell any story you want. Intel cutting its workforce is more of a reflection on the state of the PC market rather than the US economy as a whole. I'm not saying the market is overvalued or not, but this is in no way indicative of that.

^ To add to this I'd lay say the over-valuation(s) are a side-effect of our monetary policy being in never-ending "stimulus" mode.

On Intel I think the "everything is going mobile" is PR for investors, the PC market doesn't have any foreseeable growth potential atm.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#76

Post by intelthrow »

wrong_variable wrote: post #14

Does anyone working within Intel know the reasoning ? It seems skylake is doing really well. Is it mostly electrical engineers working on the processors or sales and marketing people ?

I hope it's the hardware side of the company waking up that the software and "solutions" side of the company is a gangrenous fifth limb.

Things like trying to start an app store when they didn't have content (e.g. Steam) or a platform (Google, Apple, Microsoft), trying to pivot that abomination into a media store after Netflix already won and the studios are all trying to start their own, trying for way too long to deliver solutions of putting parts in verticals (e.g. tablets, micros) where they are at best only competitive on one of price, power, or performance and immediately face-planting, but limping along seemingly oblivious to why any of these projects fail.

The mention of IoT though makes me think this isn't the case. Definitely part of the brain-dead trendy "solutions" thinking. I don't think you're going to compete with commodity cheap micros with the best IP or the best process size... price is king.

There are too many layers at Intel, and that leaves too many of those layers too well insulated, able to believe it was the brand that won them their markets (not the economics: Wintel monopoly in personal computing history, having the best server and laptop parts currently), and that despite the economics of new products and "solutions", the brand will somehow convince people to buy in.

Like, why do I ever see you on Television, Intel? Who is the audience for these ads, potential investors? Shouldn't they rather see higher dividends? People don't go to the mall and buy Intel chips, they go buy Macbooks and they use Instagram. Facebook and Apple buy your chips at a scale where it's all ROI, and you deliver that, so what are the ads for?

This shit is why I left, and why always did the quicksale on the stock purchase plan.

Intel needs to just keep making the best parts and leave it to the market to conjure up asinine things to do with them. Kill all the product lines where there's no road to being #1 ROI within 10 years, keep those in the lab.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#77

Post by Jerry2 »

tma-1 wrote: post #39

So Intel is cutting 11% of its workforce, Goldman Sachs just reported a 56% drop in profits, Morgan Stanley had a 50% drop in profits, Netflix missed subscriber growth estimates etc... yet, the Dow just hit a 9-Month high, and the S&P500 is now above 2100. The whole market is overvalued, not just the tech unicorns.

>The whole market is overvalued, not just the tech unicorns.

Yep. That's what Peter Thiel is saying as well: https://news.ycombinator.com/item?id=11485376

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#78

Post by tma-1 »

dntrkv wrote: post #54
tma-1 wrote: post #39

So Intel is cutting 11% of its workforce, Goldman Sachs just reported a 56% drop in profits, Morgan Stanley had a 50% drop in profits, Netflix missed subscriber growth estimates etc... yet, the Dow just hit a 9-Month high, and the S&P500 is now above 2100. The whole market is overvalued, not just the tech unicorns.

If you pick and choose stocks, you can tell any story you want. Intel cutting its workforce is more of a reflection on the state of the PC market rather than the US economy as a whole. I'm not saying the market is overvalued or not, but this is in no way indicative of that.

Have you been following the current earnings season? We are witnessing horrible earnings while stocks keep going up and up. All the losses in August 2015/February 2016 have virtually disappeared after the oil price recovery.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#79

Post by spriggan3 »

dntrkv wrote: post #43
wrong_variable wrote: post #14

Does anyone working within Intel know the reasoning ? It seems skylake is doing really well. Is it mostly electrical engineers working on the processors or sales and marketing people ?

My bet is on falling PC sales. I'm surprised this didn't happen earlier, to be honest. PC sales by year: http://i.imgur.com/IxSo1oy.png

Does this include laptops ?

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#80

Post by ececconi »

anilshanbhag wrote: post #20

One must understand that this is re-structuring. Intel is probably letting go of some divisions it no longer intends to pursue. In the not-so-distant past, Microsoft did an internal re-structuring when Satya Nadella became the CEO. It isn't as bad as it is portrayed to be as most people end up getting re-hired in other groups or take the severance and join a new company.

I doubt with the CFO being let go most people will end up getting re-hired in other groups. Their revenues are down, they're closing up shop in some areas or realizing they need to run some areas with less people. It's actually a pretty big deal.
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