News Intel Posts Largest Loss in Its History as Sales Plunge 36%

[Admin]

Intel's Q1 sales beat expectations, but the company loses $2.8 billion.

Intel Posts Largest Loss in Its History as Sales Plunge 36% : Read more

 

[InvalidError]

Sales do tend to drop when you axe whole business units and pricing for your remaining units is kind of tone-deaf to the actual market.

 

[Kamen Rider Blade]

It's like watching the Titanic Slowly Sink over the course of years.

 

[Elusive Ruse]

I hope they manage to get things right ( in a customer friendly manner), Intel is a legendary company and I want them to be out there innovating and competing.

 

[TerryLaze]

It's like watching the Titanic Slowly Sink over the course of years.

They had a super high for the last 6 years and are now basically twice the company they were then.
From last quarter of 2016 to today:
property went from 36 to 85
total assets from 113 to 185
now the total bebt also increased by a lot but in general it's like if the titanic blew up like a balloon and lifted to the sky, then what intel goes through would be just like it.

Sales do tend to drop when you axe whole business units and pricing for your remaining units is kind of tone-deaf to the actual market.

They increased a lot in size which makes it necessary for them to go through their inventory and sort things out that won't make them any money in the future.

You don't negotiate with terrorists and you don't drop prices when the market goes down.
Intel knows the secret that many people seem to ignore, we live in a world where technology is essential, there is no way out of buying your next CPU, it might take a while longer than normal but nobody can avoid it.

 

[Deleted member 14196]

I believe you’re referring to the elasticity. Electronics are not as elastic as let’s say gasoline.


It’s also interesting to note the word terrorist that you use, so the market is a terrorist?

I see them as a failing company going forward if they don’t change their ways. They only did well because of Covid in the past few years.

 

[Elusive Ruse]

It’s also interesting to note the word terrorist that you use, so the market is a terrorist?

Fascinating isn't it? It goes to show how Intel trains their employees and indoctrinates their outlook towards the market.

 

[peachpuff]

Tiny violin.gif

 

[baboma]

It's amusing to see people wishing Intel would somehow disappear. People can't see past their own noses. What do you think would happen to x86 CPU pricing if AMD was the sole manufacturer?

Do fanboys ever grow up?

 

[InvalidError]

You don't negotiate with terrorists and you don't drop prices when the market goes down.
Intel knows the secret that many people seem to ignore, we live in a world where technology is essential, there is no way out of buying your next CPU, it might take a while longer than normal but nobody can avoid it.

When you are a company with some over-inflated profit margins, you do need to debloat your margins during a market slowdown by some amount to keep sales going of your potential customers will look for exit doors never look back.

As for the "secret of buying your next CPU", ~15 years of PC sales going down by a steady 5-8%/year until COVID caused a sugar rush that is still in mid-crash right now disagree. A steadily growing number of people are moving to non-PC and stretching whatever PCs they may have some number of additional years longer.

It's amusing to see people wishing Intel would somehow disappear. People can't see past their own noses. What do you think would happen to x86 CPU pricing if AMD was the sole manufacturer?

x86 is a kludgy instruction set that should have died 15+ years ago. If Intel disappeared, it could finally give the industry a push to settle on a new open ISA like RISC-V to avoid license hostage taking like you do with ARM.

Intel chips are a critical part of US infrastructure and the US government's requirements on backup suppliers of critical infrastructure is how AMD got its x86 license. The US government won't allow Intel to fall.

 

[Math Geek]

"The company lost $2.8 billion during the quarter as its gross margin declined to 38.4%. Despite posting the largest loss in its history, Intel paid $1.5 billion in dividends."

so long as the investors got money, the rest does not matter. they can just fire another 10,000 people to cover that small payout to the rich.

move along citizen, nothing to see here......

 

[baboma]

>x86 is a kludgy instruction set that should have died 15+ years ago. If Intel disappeared, it could finally give the industry a push to settle on a new open ISA like RISC-V to avoid license hostage taking like you do with ARM.

In this reality, hardware only works with software running inside it. Like it or not, there's a vast installed base of x86 software that ain't going anywwhere, at least not in your or my lifetime.

Yes, it would be nice if words like "legacy" and "compatibility" don't exist, and we can always chase after the latest shiny. But the world doesn't work that way.

>Intel chips are a critical part of US infrastructure and the US government's requirements on backup suppliers of critical infrastructure is how AMD got its x86 license. The US government won't allow Intel to fall.

Exactly. Some companies have reached "too big to fail" status. SpaceX is one, which means Elon Musk will always be in the conversation, regardless of what people think of him.

 

[TerryLaze]

It’s also interesting to note the word terrorist that you use, so the market is a terrorist?

If you want intel can be the terrorist...
I just quoted two things to never do.
Sure the free market is just as hard as a terrorist situation, any false move and you are gone.

When you are a company with some over-inflated profit margins, you do need to debloat your margins during a market slowdown by some amount to keep sales going of your potential customers will look for exit doors never look back.

"The company lost $2.8 billion during the quarter as its gross margin declined to 38.4%. Despite posting the largest loss in its

Hey,look at that...

As for the "secret of buying your next CPU", ~15 years of PC sales going down by a steady 5-8%/year until COVID caused a sugar rush that is still in mid-crash right now disagree. A steadily growing number of people are moving to non-PC and stretching whatever PCs they may have some number of additional years longer.

Covid started at the end of 2019 hence covid-19, and only really started to affect the market in the beginning of 2020, I showed numbers from 2016 for a reason, that's a good 3 years before covid.

Intel chips are a critical part of US infrastructure and the US government's requirements on backup suppliers of critical infrastructure is how AMD got its x86 license. The US government won't allow Intel to fall.

Link or it didn't happen, every source only shows IBM forcing intel to use a second source supply for their CPUs.
Edit:
Also it wasn't about the x86 license since such a thing doesn't exist, it was to be able to do a 1:1 exact same design.

 

[PEnns]

You don't negotiate with terrorists and you don't drop prices when the market goes down.

Very crude analogy.

But you surely know, or should know, there are exceptions to either case throughout history of politics and commerce!!

 

[KyaraM]

It's amusing to see people wishing Intel would somehow disappear. People can't see past their own noses. What do you think would happen to x86 CPU pricing if AMD was the sole manufacturer?

Do fanboys ever grow up?

Nope! They can't.

 

[TerryLaze]

Very crude analogy.

But you surely know, or should know, there are exceptions to either case throughout history of politics and commerce!!

Yes, exception means you don't always or even often do it, but only very rarely when there is a real severe reason to do so.

 

[InvalidError]

Link or it didn't happen, every source only shows IBM forcing intel to use a second source supply for their CPUs.

Why did IBM absolutely need a second supplier? Government contracts: agencies must follow the "sole source procurement" rules whenever they cannot identify more than one supplier for a given thing they need a stable supply of, which is a heap of extra paperwork to prove that there are no viable alternatives.

Had Intel refused to let AMD fab some CPUs, IBM might have gone elsewhere and we would have been running Alpha, MIPS or something else today simply because that is what the governments and corporations would have standardized on instead of x86.

 

[PEnns]

I do want Intel to survive. Main reason is competition, especially on the GPU front.

Their A7xx series is a good balance and will prove a thorn for the other two big companies.

 

[jkflipflop98]

Intel isn't going anywhere. The company will be just fine.

 

[-Fran-]

Oof... I kind of was expecting bad, but not this bad...

The server figures are scary-bad. Think about how much of a mammoth Intel is and they halved their server profits and shrunk margins alongside. Those are horrible signs and they need a win or they'll be in old AMD's place within 5 years, if not earlier, since Intel is bigger. There's so many things they can cut before becoming a skeleton.

Regards.

 

[Eximo]

Why did IBM absolutely need a second supplier? Government contracts: agencies must follow the "sole source procurement" rules whenever they cannot identify more than one supplier for a given thing they need a stable supply of, which is a heap of extra paperwork to prove that there are no viable alternatives.

Had Intel refused to let AMD fab some CPUs, IBM might have gone elsewhere and we would have been running Alpha, MIPS or something else today simply because that is what the governments and corporations would have standardized on instead of x86.

Yep. Fun times at work whenever we have to prove a sole source vendor actually exists. Bitten us a few times when a start up is hiding in the corner, and then we are forced to bid out, and guess who undercuts everyone else? That's right, the new company with potentially zero experience. You ever wonder why government software really really sucks sometimes...

 

[sitehostplus]

They had a super high for the last 6 years and are now basically twice the company they were then.
From last quarter of 2016 to today:
property went from 36 to 85
total assets from 113 to 185
now the total bebt also increased by a lot but in general it's like if the titanic blew up like a balloon and lifted to the sky, then what intel goes through would be just like it.

They increased a lot in size which makes it necessary for them to go through their inventory and sort things out that won't make them any money in the future.

You don't negotiate with terrorists and you don't drop prices when the market goes down.
Intel knows the secret that many people seem to ignore, we live in a world where technology is essential, there is no way out of buying your next CPU, it might take a while longer than normal but nobody can avoid it.

That's nice, but here's another little secret for you: I don't have to buy Intel either.

Right now, I'm using a Ryzen 9 processor, an AMD x670E chipset on the motherboard, a Corsair SSD, and an Nvidia GPU. My current machine is 0% Intel which is amazing.

I take that back, there is one Intel device on this machine. It's the @*&^$& wifi card that keeps cutting out on me, forcing me to constantly reboot the computer! 🤣

 

[sitehostplus]

Just for fun, I looked up AMD's 2023 Q1 P&L, and they are not in much better shape than Intel. Profits dived like over 80%.

Both companies are in big trouble IMHO.

 

[healthy Pro-teen]

That's nice, but here's another little secret for you: I don't have to buy Intel either.

Right now, I'm using a Ryzen 9 processor, an AMD x670E chipset on the motherboard, a Corsair SSD, and an Nvidia GPU. My current machine is 0% Intel which is amazing.

I take that back, there is one Intel device on this machine. It's the @*&^$& wifi card that keeps cutting out on me, forcing me to constantly reboot the computer! 🤣

First time I've heard problems with an intel wifi card, IDK though I use a TP link one tho

 

[JamesJones44]

Oof... I kind of was expecting bad, but not this bad...

The server figures are scary-bad. Think about how much of a mammoth Intel is and they halved their server profits and shrunk margins alongside. Those are horrible signs and they need a win or they'll be in old AMD's place within 5 years, if not earlier, since Intel is bigger. There's so many things they can cut before becoming a skeleton.

Regards.

Some of this is financial engineering too (aka kitchen sink quarter as they are called). If they were really that concerned they would have cut the dividend. Instead, they make the numbers like like an 80s horror flick and give bad guidance so they can easily jump over the bar next qrt.

Now if they report numbers like this again, then I would start to worry about the health of the company overall.