News Intel Posts Largest Loss in Years as PC and Server Nosedives

Page 2 - Seeking answers? Join the Tom's Hardware community: where nearly two million members share solutions and discuss the latest tech.

korekan

Commendable
Jan 15, 2021
86
8
1,535
price increase kinda high. and buying device is reduced since we are coming back to office. then its no surprise, even them should already realized that
 

bit_user

Polypheme
Ambassador
They are doing fine.
What matters is how they're doing compared to their guidance and Wall St.'s expectations. And that's not fine.

Also, the article didn't mention a certain 3-letter word: ARM. That's probably a bigger threat to them in the cloud than even in laptops, right now. A year ago, when Amazon launched Graviton 3, they said about half of their AWS servers were already ARM-based. In the client computing sector, the loss of Apple's business should also be hurting.
 
Last edited:
What matters is how they're doing compared to their guidance and Wall St.'s expectations. And that's not fine.
How does that matter?! Or rather to whom does that matter?!
As an end user you shouldn't care at all about stocks and intel doesn't have to care about stocks because while I'm sure they don't mind it they don't really need the money from the stock market to do well financially.
The only bad thing that could happen is for stockholders to get grumbly for a while but that's it.
The only people to whom it would matter would be speculators/investors that are looking forward to improved stock prices.
Also, the article didn't mention a certain 3-letter word: ARM. That's probably a bigger threat to them in the cloud than even in laptops, right now. A year ago, when Amazon launched Graviton 3, they said about half of their AWS servers were already ARM-based. In the client computing sector, the loss of Apple's business should also be hurting.
Can you come up with a market share chart for cloud/server/whatever for the last 10 years or so that shows how much intels stake in it is?
Because just looking at intel financial reports their cloud revenue is always a third to maybe half of client so I don't get why people keep talking about cloud/server as if it were somehow super-important to intel to do well there.
Sure, it's money they could potentially lose, but it's only a lot of money if intel had zero competition in cloud until now, hence why market share numbers would be interesting, if intel had a good amount of competition in that market until now then numbers are probably not going to change by much.
 

bit_user

Polypheme
Ambassador
How does that matter?! Or rather to whom does that matter?!
As an end user you shouldn't care at all about stocks and intel doesn't have to care about stocks because while I'm sure they don't mind it they don't really need the money from the stock market to do well financially.
Though I shouldn't have to, I'll spell it out for you.

It matters to Intel's investors, and they hire & fire the CEO and board of directors. That's why Intel is having to do layoffs and shutter entire product lines. These actions affect support of current products (e.g. graphics drivers) and development of future products, both of which could affect users.

A lot of folks on here (myself included) have lamented the discontinuance of Optane. What forced that decision was obviously the nosedive of their financial situation.

Can you come up with a market share chart for cloud/server/whatever for the last 10 years or so that shows how much intels stake in it is?
I've seen something like that. I'll post it up, if I can find it.

Because just looking at intel financial reports their cloud revenue is always a third to maybe half of client so I don't get why people keep talking about cloud/server as if it were somehow super-important to intel to do well there.
As the article mentioned, Intel suffered substantial decrease in client revenues as recently as 2017, because people are generally moving away from desktops (long-term trend) and towards other types of devices that have been increasingly ARM-based. Conversely, the cloud computing market is on a strong growth path. So, you generally want to focus on gaining or holding your share of growing markets, while declining markets are of less strategic value.
 

Elusive Ruse

Commendable
Nov 17, 2022
375
492
1,220
Though I shouldn't have to, I'll spell it out for you.

It matters to Intel's investors, and they hire & fire the CEO and board of directors. That's why Intel is having to do layoffs and shutter entire product lines. These actions affect support of current products (e.g. graphics drivers) and development of future products, both of which could affect users.

A lot of folks on here (myself included) have lamented the discontinuance of Optane. What forced that decision was obviously the nosedive of their financial situation.


I've seen something like that. I'll post it up, if I can find it.


As the article mentioned, Intel suffered substantial decrease in client revenues as recently as 2017, because people are generally moving away from desktops (long-term trend) and towards other types of devices that have been increasingly ARM-based. Conversely, the cloud computing market is on a strong growth path. So, you generally want to focus on gaining or holding your share of growing markets, while declining markets are of less strategic value.
Intel had over 90% market share in both server and PC processor market in 2017 now they sit at 70%.
 
  • Like
Reactions: bit_user

KyaraM

Admirable
Oh people certainly care about PC power consumption in Europe.

Electricity costs about 3 times more in Germany, Belgium and Denmark than it does in the US. Countries with lower average wages than the US.

A 600 watt gaming PC in the US is comparable to a 1800 watt PC in Germany in terms of electricity costs. If you run one of those i7/i9 and a 4080/4090, you would get a very high electricity bill in Germany.

dgdgdgdgg.png
Average wage is misleading. You have to take care of your healthcare yourself, for example, while over here companies are required to pay half of it. We also don't have ridiculous medical bills as a result and insurance companies cannot frick you over as easily. Also, the minimum wage is higher than in the US and we don't have to pay off ridiculous student depts, either. Living in apartments instead of an own house also helps. You can't compare wages and not take into account what you have to spend each month. Even after all wages and living costs, I have more than half my wage left to do whatever with. Gas and electricity prices are also capped now so it should get better now. Always look at the entire package, not one or two aspects of it.
 
  • Like
Reactions: bit_user