Intel Reports Smaller Profit Due to Ivy Bridge CPU Production

[Guest]

Intel Reports First-Quarter Revenue of $12.9 Billion

Intel Reports Smaller Profit Due to Ivy Bridge CPU Production : Read more

 

[ojas]

*Thinks of TSMC*

 

[stingstang]

3 new factories just to switch to 22nm? This is insane! More insane is that the first BATCH of these processors are going to pay for them. Their profit numbers are just incredible to be able to spend this kind of dough every 2 years on new tech, research, manufacturing, ect.. How is America still in the sh!tter with the federal tax income taking a piece of this galaxy-sized pie of revenue from an American-based company?

 

[stingstang]

I'm suddenly getting this picture of a cartoon character of a fat guy in a stained white t-shirt laughing while swinging a greasy turkey leg around in one hand.

 

[zanny]

[citation][nom]stingstang[/nom]3 new factories just to switch to 22nm? This is insane! More insane is that the first BATCH of these processors are going to pay for them. Their profit numbers are just incredible to be able to spend this kind of dough every 2 years on new tech, research, manufacturing, ect.. How is America still in the sh!tter with the federal tax income taking a piece of this galaxy-sized pie of revenue from an American-based company?[/citation]

In terms of raw revenue, which income tax is applied to, Intel is only generating half the revenue Apple is. Also, the US govt gets a huge 2.3 trillion dollars in revenue a year from taxes, which is more than twice what any other country takes in in the world in terms of absolute tax revenue. They just spend another 2 trillion on military-industrial complex wars and propping up dying industries that buy out the politicians.

 

[gilgamex]

[citation][nom]Zanny[/nom]In terms of raw revenue, which income tax is applied to, Intel is only generating half the revenue Apple is. Also, the US govt gets a huge 2.3 trillion dollars in revenue a year from taxes, which is more than twice what any other country takes in in the world in terms of absolute tax revenue. They just spend another 2 trillion on military-industrial complex wars and propping up dying industries that buy out the politicians.[/citation]

When we find ourselves in these moments, I like to let Carlin take the Stage:
http://www.youtube.com/watch?v=Dpcd0woY2KY

 

[dgingeri]

Exactly what I was saying. AMD wasn't able to produce a competing CPU, so Intel delayed release of the Ivy Bridge. They'll easily make up for this lab in profit next quarter once IB is released, and then some. They're going to be charging more for IB than for nearly identical SB chips, on a product that is smaller and costs less to produce, and likely cost less to engineer because it's mostly just a die shrink of SB.

You know the worse part? All this profit will begin to accumulate in the company bank accounts. Stale pools of money, like Google and Apple have had for years, slows the economy. It's like a blood stream. Less money circulating and more sitting around not being spent has ten times the effect on the economy. Apple has nearly $50 billion sitting around, that costs the economy about $500 billion because it is not circulating. Apple, Google, and Intel need to spend this cash, lower prices, hire more people, treat their current employees to nice fringe benefits. This would stimulate the economy as a whole and benefit all of us, including those companies. They'd probably make double that back, and the economy would expand by even more. But no... They'd rather let it sit around and let the country wallow in unemployment.

 

[dragonsqrrl]

[citation][nom]dgingeri[/nom]They're going to be charging more for IB than for nearly identical SB chips, on a product that is smaller and costs less to produce, and likely cost less to engineer because it's mostly just a die shrink of SB.[/citation]
Actually the MSRP is lower than similarly clocked Sandy Bridge processors. Combined with the improvements made to performance per clock and performance per W, you're really getting a lot more for your money. I've heard that initial retail pricing will be greatly inflated, but this should balance out eventually.

http://www.guru3d.com/news/intel-ivy-bridge-gets-prelaunch-price-cut/

 

[dgingeri]

[citation][nom]dragonsqrrl[/nom]Actually the MSRP is lower than similarly clocked Sandy Bridge processors. Combined with the improvements made to performance per clock and performance per W, you're really getting a lot more for your money. I've heard that initial retail pricing will be greatly inflated, but this should balance out eventually.http://www.guru3d.com/news/intel-i [...] price-cut/[/citation]

That's not what I read: http://www.tomshardware.com/news/intel-cpu-ivy-bridge-processor-launch,15311.html

 

[silverblue]

[citation][nom]greghome[/nom]I'm pretty sure those were my exact words in the first quarter of comments thus far[/citation]
That'd be a Chinese spammer. Usually, it's just a portion of a post, but as yours was succint, we get a copy in this case.

 

[ben850]

Has Intel released any type of pricing info for the IB CPU's?

 

[iamtheking123]

[citation][nom]ben850[/nom]Has Intel released any type of pricing info for the IB CPU's?[/citation]
Yes.

 

[dragonsqrrl]

[citation][nom]dgingeri[/nom]That's not what I read: http://www.tomshardware.com/news/i [...] 15311.html[/citation]
umm... yes it is. That's pretty much exactly what I just said. The article you linked makes no mention of MSRP, but says that prices will be inflated initially.

"Those who can wait should probably hold off until there is a balance of supply and demand in the market."

 

[Guest]

Good grief, can they just release this CPU already! I don't ever recall a more anticipated CPU launch... except maybe the Pentium 4. This thing has dragged on for almost 6 months now. Just release the damn thing so we can move on to the next CPU.

 

[livebriand]

Man... AMD sucks even more in comparison to these numbers.

 

[tomfreak]

smaller profit despite market dominance, well at leats I know my money goes more into the fab to make better cpu than Intel own pocket, unlike apple.

 

[hector2]

[citation][nom]dgingeri[/nom]AMD wasn't able to produce a competing CPU, so Intel delayed release of the Ivy Bridge.[/citation]
It's all about supply & demand and product cost. Even without AMD, Intel is driven to increase profits and they still do that by transititioning as fast as possible to the faster, smaller IB and driving costs & prices down to sell more CPUs. Smaller chips means cheaper, faster, less power-hungry chips. At the same time, their competition is no longer AMD but ARM