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More on Intel's Q3: PC division sales -8% Y/Y, server division +6%. PC CPU prices -1% Q/Q and...

More on Intel's Q3: PC division sales -8% Y/Y, server division +6%. PC CPU prices -1% Q/Q and -4% Y/Y. Gross margin was 64.3%, nearly flat Q/Q and better than expected. But it's forecast to fall to 57%-59% in Q4, which suggests pricing/ASP weakness. 2012 capex, previously expected to be at low end of $12.1B-$12.9B range, is now expected to total just $11B-$11.6B (a negative for chip equipment stocks). INTC -1.9% AH. CC at 5PM ET (webcast). (CFO comments - PDF) (PR)
Comments (18)
  • wigit5
    , contributor
    Comments (4050) | Send Message
     
    Not sure why it's down, it didn't seem all that bad... here is to hoping I can buy more at sub 21$
    16 Oct 2012, 04:39 PM Reply Like
  • piggysun
    , contributor
    Comments (140) | Send Message
     
    Gross Margin was 63.3%, much better than anticipated 62%. Tax rate was only 24% (much better than anticipated). Outlook of Q4 is weak so far, but that is Intel's style. capex is much lower because intel is cutting expense at such global economy. SA editors, please be accurate, no bias.
    16 Oct 2012, 04:48 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (804) | Send Message
     
    That's the GAAP gross margin, non-GAAP was 64.3%. The capex cut suggests they're expecting weaker demand. No bias here.
    16 Oct 2012, 05:20 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Gross margin forecast declines expected, but I wonder if they will be revised even lower given pricing pressure.
    16 Oct 2012, 04:49 PM Reply Like
  • piggysun
    , contributor
    Comments (140) | Send Message
     
    It is because Intel is switching to 22 nm manufacture. Gross margin will pick up soon next year.
    16 Oct 2012, 04:52 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    That assumes Intel will recover part of the margin on the cost side; if pricing pressure from increased competition is strong, this may not be the case.
    16 Oct 2012, 05:01 PM Reply Like
  • Michael2343
    , contributor
    Comments (457) | Send Message
     
    Demand destruction. People have no money and most can make do with the tech they have.
    16 Oct 2012, 05:49 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (8973) | Send Message
     
    It looks like Intel strangled AMD at the low end. They have been playing nice to keep them afloat with the rising tide, but it seems they will be relentless in a weak macro.
    16 Oct 2012, 05:06 PM Reply Like
  • westcoastinvests
    , contributor
    Comments (46) | Send Message
     
    Yes AMD has been allowed to survive for years to avoid regulatory pressure, now as INTC faces competition from non PC chip makers there seems little need to worry about pushing out AMD.
    16 Oct 2012, 06:12 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (8973) | Send Message
     
    Yep...
    16 Oct 2012, 06:19 PM Reply Like
  • Michael2343
    , contributor
    Comments (457) | Send Message
     
    Intel and Apple can sink like rocks tied together. If techs have hit a bubble high, these two will be leading the charge down.
    16 Oct 2012, 05:47 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (8973) | Send Message
     
    Bubble? At 9.46x earnings...?
    16 Oct 2012, 06:20 PM Reply Like
  • The Fox
    , contributor
    Comments (638) | Send Message
     
    Michael...

     

    You are clueless. Really.
    16 Oct 2012, 10:27 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (8973) | Send Message
     
    Yeah. AAPL and INTC are not in "bubble" territory. Not even close.
    17 Oct 2012, 03:27 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9933) | Send Message
     
    Guess those who have been selling since $29 have had the right idea.
    16 Oct 2012, 06:23 PM Reply Like
  • FedPres
    , contributor
    Comments (18) | Send Message
     
    “I think PCs are going to be like trucks, Less people will need them. And this is going to make some people uneasy.” - Steve Jobs
    16 Oct 2012, 06:46 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3555) | Send Message
     
    Actually there are a lot of trucks sold, and they're high margin and represent a lot of the profit of the automakers. Are you're saying this is a bad thing? Or are you just into tired and long disproved "the PC is dead" slogans.
    16 Oct 2012, 11:33 PM Reply Like
  • piggysun
    , contributor
    Comments (140) | Send Message
     
    once the economy comes back onto the right track, the pc market will pick up, say late 2013 or 2014?
    16 Oct 2012, 11:55 PM Reply Like
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