• David Jackson
    Are tech giants $MSFT and $INTC "dividend traps"? Previous generation tech, losing market share, high dividend yield but poor prospects?
    11/29/12
    Reply (20)
    • David Jackson: See Amit Chokshi's "Is Microsoft The Ultimate Value Trap? http://seekingalpha.com/a/m4hn
      11/29/12
    • Ashraf Eassa: No, they're not. Intel's not "losing market share". It's simply taking it a little longer to expand into brand new markets.
      11/29/12
    • Ashraf Eassa: Also, with regards to $MSFT, it will gain significant share in tablets. I am not so confident about smartphones, however. Android wins that.
      11/29/12
    • Ashraf Eassa: But I can definitely see where people are coming from - Intel's not in the iPad or a Nexus device, so it's harder to see it play out.
      11/29/12
    • David Jackson: Ashraf, on $INTC not losing market share: If you include smartphones in the definition of "computing devices", hasn't it lost market share?
      11/29/12
    • David Jackson: Because that's probably the way most people view the market - a shift from laptops to tablets and smartphones.
      11/29/12
    • Ashraf Eassa: I think people are looking at a short-term trend and extrapolating it out to infinity. Everyone already has a laptop/PC
      11/29/12
    • Ashraf Eassa: So obviously people aren't going to be rushing to buy them in droves. Tablet/smartphones will hit "good enough" soon too and the huge growth
      11/29/12
    • Ashraf Eassa: that everyone's projecting will fall off of a cliff fast. If a tablet is good enough, what reason is there to upgrade to the next one? ;-)
      11/29/12
    • Ashraf Eassa: And if it's not good enough, then there's a need for a laptop/desktop
      11/29/12
    • David Jackson: Interesting question: How sensitive is the user experience to tech advances? Right now, in smartphones it's much higher than w laptops.
      11/29/12
    • David Jackson: For example, better screen, battery life, faster processor and storage make a bigger difference right now to smartphones than laptops...
      11/29/12
    • David Jackson: ...so the upgrade cycle in smartphones will be faster than in laptops for a while. Big implications for unit sales and market share.
      11/29/12
    • wigit5: I think the upgrade cycle in mobile is driven more by telcoms offering subsidized phones to renew contracts more so than minor performance
      11/29/12
    • wigit5: increases... Battery life and speed is already pretty sufficient and the screens are so good on the lumia 920 and iPhone 5 , and SIII that
      11/29/12
    • wigit5: further improvement would probably be hardly noticeable to the naked eye.
      11/29/12
    • wigit5: Eventually Mobiles will slow down, My theory is that mobile and desktop/laptop upgrades will probably mold into an alternating upgrade cycle
      11/29/12
    • wigit5: one year I'll upgrade my phone the next my desktop/laptop...
      11/29/12
    • wigit5: INTC is my biggest disappointment so far in the markets, down 28% so far, but I believe in the brand and company to turn it around ..
      11/29/12
    • David Jackson: Not sure that tech, eg. processor purchase decisions by device manufacturers, is bought on brand.
      11/30/12