Intel saw its profits
drop by 38% in the first quarter to $1.35 billion dollars -- that
was down from $2.18 billion a year ago. However, the earnings of 23
cents per share just barely eked pasted analysts' expectations of 22
cents per share.
"The first quarter was a little
better than I was expecting. The second-quarter (estimate) was worse
than I modeled. We're in for a rough quarter with Intel," said
ThinkEquity Partners analyst Eric Ross. Things have pretty much been
down across the board for Intel. Reuters reports:
The company lowered its full-year
revenue forecast to a 3 percent fall from 2005. In January, Intel had
forecast 6 percent to 9 percent revenue growth in 2006. Intel also
cut its estimate of 2006 gross margin to 53 percent from its January
forecast of 57 percent.
Much of the drop can be attributed to
AMD's recent gains on the desktop
and in the server
arena. While Intel shares have dropped 24% in the past year, AMD
shares have risen 80% during the same period.
Intel has aggressively cut prices to
stay ahead of AMD's surge and its new Core lineup is expected to
give them a boost later in the year. Only time will tell if AMD's
AM2 processors will have what it takes to keep up with Core
quote: When real world performance numbers come out and we see that Conroe performs better than k8 by just a little if at all
quote: Intel has a lot of good stuff coming out this year, things are going to rebound, and fairly well, too
quote: 1. Even if Conroe is the best thing since sliced bread, they can only produce enough for them to be ~10% of their desktops in Q3, and ~20% in Q4. This isn't enough volume for them to turn the financials around.
quote: 2. AMD will still continue to gain significant growth in servers. Even if Woodcrest is amazing, it won't be qualified till well into next year (about the time K8L is expected)...and as it doesn't have HT connections, it won't compete with Opteron in the Enterprise market at all. And leave us not forget that Opteron goes Quad Core @65nm by the end of this year.
quote: According to the below link AMD will not release Quad core Opterons until 2007
quote: by dmcanally on April 20, 2006 at 10:53 AM
You grow a pair, slap her to the floor, she throws you out the window and tells you to get a new woman.
quote: I really don't doubt that Intel has done some of the things AMD has accused them of
quote: AMD has lost 1/4 of it market value since Conroe was shown and 65nm up and running