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"We anticipate the worst 2H for PC sales since inception," says Citi's Gen Yeung, responding to...

"We anticipate the worst 2H for PC sales since inception," says Citi's Gen Yeung, responding to Intel's (INTC -3.5%) Q3 warning. Yeung and many others have been raising alarm bells about PC demand in advance of Windows 8's (MSFT -1.8%) Oct. 26 consumer launch. FBR notes PC and storage inventories are at elevated levels, and Longbow believes Intel is seeing an inventory correction related to soft ultrabook uptake. The Intel Developer Forum kicks off on Tuesday.
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Comments (34)
  • kmi
    , contributor
    Comments (4041) | Send Message
     
    Smartphones, tablets, are likely part of it, as is the fact that most folks don't need ever more powerful hardware to continue doing what they do mostly: email/browsing.

     

    I'd also suggest that 'cloud' based computing is a contributing factor.

     

    Intel is guiding down, so what's next? I think it's a short term soft patch as Intel gets its mobile chip strategy sorted. Mobile really is where the growth lies right now.

     

    Also, ARM based processors aren't just in mobile (by which I mean phones and tablets), so if it gets itself sorted it opens a lot of new markets for expansion.
    7 Sep 2012, 01:23 PM Reply Like
  • Jonc
    , contributor
    Comments (34) | Send Message
     
    for us non tech speak types please translate "We anticipate the worst 2H for PC sales since inception,"

     

    What is 2H?
    7 Sep 2012, 01:30 PM Reply Like
  • kmi
    , contributor
    Comments (4041) | Send Message
     
    Second half of the year.
    7 Sep 2012, 01:32 PM Reply Like
  • InvestingInMobile
    , contributor
    Comments (53) | Send Message
     
    That is the sound of the mobile revolution spanking Intel for ignoring it
    7 Sep 2012, 01:51 PM Reply Like
  • MexCom
    , contributor
    Comments (3054) | Send Message
     
    Waiting for something better in Q3. Time to roll out a better performing chip. Just jawboning for a very dynamic Q4 with a Windows 8 splash. I'm long both INTC and MSFT.
    7 Sep 2012, 02:09 PM Reply Like
  • Rudester
    , contributor
    Comments (2466) | Send Message
     
    Sorry, but if there was going to be a splash to drive new PCs, Intel would have primed its production pump this past July to stand a chance of those new PCs being available for the Christmas season.

     

    In the consumer electronics and PC business, if you want it by Christmas you have to ramp the chip manufacturing by July or it won't happen.

     

    (A past Silicon Valley techie)

     

    PS: Long Intel
    7 Sep 2012, 04:10 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    It will be interesting to see if people have been holding off on buying PCs (laptops & desktops) until Win8 comes out October 26th. If so, there could be a spike in PC sales through the end of Q4 and into Q1'13... Not guaranteed, just speculating...
    7 Sep 2012, 02:11 PM Reply Like
  • Christopher Grosvenor, CMT
    , contributor
    Comments (254) | Send Message
     
    I don't know about everyone else, but my latest purchase -- a couple days ago -- was a MAC.
    7 Sep 2012, 07:07 PM Reply Like
  • chintan1671
    , contributor
    Comments (49) | Send Message
     
    I agree to disagree. Upgrade to Windows 8 from Windows 7 is just $15 ...
    7 Sep 2012, 10:18 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    @Christopher G. - A Mac is still Intel Inside! :-) And Intel is the subject of this thread...
    7 Sep 2012, 11:57 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    @chintan: Yeah, but most ordinary folks don't know that, they just know that Win8 is "on the way", and are probably (my guess) holding off on making the big purchase until Win8 is here. Also, ordinary folks don't like going through OS upgrades when they can just wait a bit longer and buy the new box with the pre-loaded OS on it. At least, IMHO...
    7 Sep 2012, 11:59 PM Reply Like
  • bill d
    , contributor
    Comments (1905) | Send Message
     
    I really get excited about anything some clown from Citi says.
    7 Sep 2012, 02:27 PM Reply Like
  • casselp_2000
    , contributor
    Comments (97) | Send Message
     
    Intel development teams are bound to have Win8-related products available for launch in mid-Oct. Their MS linkages are strong, so Intel is sure to produce new low-power high potential chips on time.
    7 Sep 2012, 02:28 PM Reply Like
  • Rudester
    , contributor
    Comments (2466) | Send Message
     
    Intel makes chips not boxes. If there were several manufacturers lined up to make Win-8 boxes with Intel chips, Intel would not have guided down.

     

    I am afraid Intel's earning are tanked through Christmas season.
    7 Sep 2012, 04:13 PM Reply Like
  • Sal Marvasti
    , contributor
    Comments (1364) | Send Message
     
    Sorry the downside risks are real. However the upside is Windows 8 rocks. I tried it just now, its as fast as IOS but it is a full OS. Its awesome. The only thing is can Windows 8 tablets compete with Apple on price? If so apple is in trouble. if not Pcs are in trouble.
    7 Sep 2012, 03:05 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9091) | Send Message
     
    I agree. Windows 8 is pretty awesome.
    7 Sep 2012, 04:27 PM Reply Like
  • digipigeon
    , contributor
    Comments (34) | Send Message
     
    As I understand it, Apple still has little presence in the Enterprise. Win 8 tablets could be a big hit here.
    7 Sep 2012, 05:00 PM Reply Like
  • Christopher Grosvenor, CMT
    , contributor
    Comments (254) | Send Message
     
    Windows is weak. I was a windows user for years. I just got a MAC. I'll put it like this, I work and so should my computer.
    7 Sep 2012, 07:05 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9091) | Send Message
     
    I do tons of work on my Windows desktop and laptop. Your point?
    8 Sep 2012, 08:15 AM Reply Like
  • kingyoba
    , contributor
    Comments (29) | Send Message
     
    If you think windows is weak, You are on the wrong platform. Wake up and look at overall market share and connectivity. Macs are great, but they are still navigating the real world. Look at how many patches and vulnerability they have been exposed to. Stay long on Intel and PC development as it goes through adjustments to SSD and flash drives.
    8 Sep 2012, 09:36 AM Reply Like
  • BradONeill
    , contributor
    Comments (21) | Send Message
     
    yawn all microsoft does is make money, they make money during good times and bad, it is obvious that people are holding out on pc sales until win 8 comes out. the tablets and smartphones are not the end of the pc, they are just an additional tool that lengthens the cycle between purchases. People still need PCs they will continue to need its no fun writing a manuscript or doing excel spreadsheets on your phone or tablet. the future could change but it hasnt yet.
    7 Sep 2012, 03:26 PM Reply Like
  • Christopher Grosvenor, CMT
    , contributor
    Comments (254) | Send Message
     
    Apple is king!
    7 Sep 2012, 07:06 PM Reply Like
  • daro
    , contributor
    Comments (1607) | Send Message
     
    I agree, but the lengthening between cycles is the Issue (problem). a slow move away from non mobile edge equipment.
    7 Sep 2012, 09:01 PM Reply Like
  • Zenmusubi
    , contributor
    Comments (8) | Send Message
     
    Intel is notorious, at least in my mind, for projecting the worst, only to have sales increase. I see this as an opportunity to buy at a lower price and to increase dividends. Intel has a huge amount of money and is investing in innovative companies. I think they are the go to chip maker who will be at the forefront of the computer industry for years to come.
    7 Sep 2012, 06:03 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4255) | Send Message
     
    Microsoft is not Intel.

     

    $45.00 by this year.

     

    Lahiem
    7 Sep 2012, 06:40 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    @MSF: $45 = INTC or MSFT? Sorry, it's not clear from your post which you mean...
    8 Sep 2012, 12:01 AM Reply Like
  • bill d
    , contributor
    Comments (1905) | Send Message
     
    Makes no dif - not gonna happen either one.
    Last 10 years both can barely break 30.
    8 Sep 2012, 04:41 PM Reply Like
  • bill d
    , contributor
    Comments (1905) | Send Message
     
    Only way they break 40 is a 1:2 split or they buy Apple.
    8 Sep 2012, 05:01 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    "Makes no dif - not gonna happen either one.
    Last 10 years both can barely break 30."

     

    Yeah, because the past is a guarantee of future performance, right?

     

    Bull...
    9 Sep 2012, 02:29 PM Reply Like
  • rasanders22
    , contributor
    Comments (544) | Send Message
     
    Of course its not. Its just unlikely. I hope it does break $40 because I would be making a nice chunk of money if it did.
    9 Sep 2012, 05:10 PM Reply Like
  • bill d
    , contributor
    Comments (1905) | Send Message
     
    And of course you have a better method. There are some things that are fairly predictable - not guaranteed. History sometimes is useful. After you've been around a while you'll figure it out.
    10 Sep 2012, 04:16 PM Reply Like
  • rasanders22
    , contributor
    Comments (544) | Send Message
     
    Im not claiming to have a better method. I prefer the buy low sell high approach, not sell low, buy something else high.
    10 Sep 2012, 04:33 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (2424) | Send Message
     
    Let's see if Intel raises their dividend again or not.

     

    "Show me the Money!!"
    10 Sep 2012, 03:50 AM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    They've already raised it once this year. I would think that if Q3 turns out better than they've just guided it down to, there's a good chance they might raise it again this year, albeit probably not by that much. But still, they've already raised it from $0.21 to $0.225 so far this year...
    10 Sep 2012, 03:42 PM Reply Like
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