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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

#191

Post by tomc1985 »

osweiller wrote: post #119
ranci wrote: post #93

Earlier quoted context omitted.

If they can't sell computers in the digital age where software has taken over everything, you can think whatever you want but that does reflect poorly on the economy. Yes, many factors are at play. It is still a terrible sign.

More computers are being sold than ever before. The market is absolutely saturated with computing devices. And aside from the intense competition Intel is facing, they're suffering the same issue that the GPU makers face -- I once upgraded yearly because the gains made it worthwhile. Now I upgrade pretty much only when something fails. It is absolutely picking a narrative.

Maybe they should adjust their business to account for this new cycle of usage, and not fight it

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

#192

Post by blakeyrat »

mixedbit wrote: post #163

What Intel needs is some reason for people to do compute intensive tasks on their computers. Today games are probably the only popular type of app that requires abundant CPU power, for most other popular activities CPU usage is low which doesn't motivate to upgrade hardware. Maybe VR can change this?

Games have been GPU-bound for years and years. Even in 2011 when it came out, Skyrim used (at most) 30-40% of CPU power. Fallout 4 (updated version of the same engine) uses proportionally far less.

In short, no, gamers aren't buying new CPUs every 18 months like they used to, either. GPUs, maybe, but Intel's weak in the gaming GPU space.

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

#193

Post by redcalx »

jules wrote: post #148
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.

How can the whole market be overvalued? Prices are relative, no?

Short answer: No. E.g. if you buy 'shares' in an index (via an ETF), you're effectively buying a weighted basket of the component shares in the index. If the individual shares are overpriced then so is the index as a whole. Hence the S&P500 has a price:earnings ratio, and you can decide for yourself if that ratio is looking 'toppy'.

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

#194

Post by clord »

jules wrote: post #148
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.

How can the whole market be overvalued? Prices are relative, no?

In one sense yes — if the sum total of the market is '1' and everyone is just some fraction of that. Then there can only ever be relative price changes.

But the sum of all prices does in fact vary. I'm sure you're familiar with Tulip Mania. Prices can be bid ever-higher in a cycle, and they can also decline in tandem as in the depression.

For the entire market to have an expanding total price, new money has to be entering the market, or the net real value of the underlying financial assets has to be declining. Either way, the entire market can become overvalued or undervalued, especially compared to non-financial (or illiquid) assets denominated in the same currency — e.g., wages, energy, or land.

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

#195

Post by qaq »

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.

Asset inflation caused by FED flooding the banks with cheap $.

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

#196

Post by aluminussoma »

mattbillenstein wrote: post #178

Large enterprise companies like this can lay off 10% anytime they want with little effect on output -- there are oodles of people slacking in big corporations basically not doing much of anything except collecting a paycheck.

And do you think these same companies are just as efficient as identifying who's slacking off? I don't think so.

They may know that 10% of the company is slacking off, but they often end up amputating a hand when they meant to just trim the fingernails.

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

#197

Post by lotyrin »

detaro wrote: post #170
lotyrin wrote: post #154

Earlier quoted context omitted.

Exactly, even if gamers were a big market, they follow the ROI too. Intel can't try to be a brand the way Nike is or the way LV is, they sell technical things to technical people but mostly to industry.

> Intel can't try to be a brand the way Nike is or the way LV is They have a surprising amount of advertising at gaming events which seemingly tries to do exactly that. Even though they are more-or-less the only option. (although AMD was (maybe still is? I'm not following that to closely) better at integrated graphics solutions which were interesting for low-end gaming, most gaming profit is probably near the high-en…

I can't really figure it out. It's pretty mindboggling.

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

#198

Post by dragandj »

jernfrost wrote: post #109
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.

Exactly the tech industry has been incapable of coming out with new functionality that really requires more power. The only thing I can see which is going to benefit a lot from CPU power is more advance AI or machine learning built in. But we are only seeing very gradual moves in this area now. VR and Games are also candidates of course, but most people aren't hard core gamers. They are fine with Angry Birds ;-) And…

The problem for Intel is that AI and machine learning are going to be typically done on the GPU. So, Nvidia. Also, a chance for AMD to recover.

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

#200

Post by thecosas »

tma-1 wrote: post #146
mathattack wrote: post #126

Earlier quoted context omitted.

Goldman's stock price is approximately 25% off it's 12 month high. [0] Morgan Stanley is approximately 35% off. [1] Seems like the market is properly taking in their bad news. Some parts of the market do fine, others get hit. And yes, some might be over-valued. When interest rates are low, the future cash flows of companies are discounted back at a lower rate. So if all things are equal (which they never really are,…

Both GS and MS (as well as other FIs) are off there highs because of all the volatility in the markets the past 6 months and worries about losses from bad energy loans. BAC, WF, Citi are all off their 12-month highs by a significant margin despite doing relatively well in Q1. Also, this has nothing to do with discounting the cash flows, it's mostly stock buybacks that's driving all the action: http://www.bloomberg.co…

I think you may have overlooked the recent DOL Proposal and it's potential impact on profit margins if it pushes forward. Good for consumers, but bad if you have to improve processes, hire people to handle them, etc.

http://blog.emoneyadvisor.com/industry-news/trending/complet...

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