toms hardware Intel Posts $500 Million Loss for the First Time in Decades as Sales Drop 17%

[bonami2]

  Quote

Intel on Thursday posted its first loss in decades as sales of its processors for client PCs, and data centers dropped sharply in the second quarter because of what Intel calls "a rapid decline in economic activity" caused by inflation, geopolitical tensions, and the ongoing Russia-Ukraine war.

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Intel Posts $500 Million Loss for the First Time in Decades as Sales Drop 17% | Tom's Hardware

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CEO blames economic decline and execution issues.

 

[UltraMega]

That shouldn't be a surprise. They're building a ton of new fabs right now, and I'm sure stiff competition from AMD is playing a part but I think it's mostly got to be due to them making a lot of manufacturing investments. They will for sure make it back with government incentives and taking on domestic customers. 

[bonami2]

  On 29/07/2022 at 11:05, UltraMega said:

That shouldn't be a surprise. They're building a ton of new fabs right now, and I'm sure stiff competition from AMD is playing a part but I think it's mostly got to be due to them making a lot of manufacturing investments. They will for sure make it back with government incentives and taking on domestic customers. 

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Am not worried either Intel is still the top manufacturer even if they are a little slow to compete with amd offering.

 

All the best for us with more competition!

[Sir Beregond]

  On 29/07/2022 at 11:05, UltraMega said:

That shouldn't be a surprise. They're building a ton of new fabs right now, and I'm sure stiff competition from AMD is playing a part but I think it's mostly got to be due to them making a lot of manufacturing investments. They will for sure make it back with government incentives and taking on domestic customers. 

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Yeah this was my thought as well. They've been spending their money to set themselves up for the foreseeable future. I'm sure it will all pay off in the long run.

[ozlay]

It's a shame they killed off optane. But i guess it never really took off.

[Andrew]

That's not surprising at all. With Apple switching to their own silicon, that's a huge contract lost considering the MacBook Air was the most popular model of laptop in the world despite it's high price. That, and AMD have really pushed forward with their laptop CPUs in the last couple of years. As far as power consumption goes, the latest AMD has to offer rivals that of the M1 chips from Apple. Intel haven't been able to make a CPU that competes with either of those two.

 

Same goes for desktop CPUs as well. AMDs offerings perform better, have lower power usage and are generally cheaper. It seems like the only thing Intel really has going for it these days is server grade stuff.

[ozlay]

  On 30/07/2022 at 23:20, Andrew said:

It seems like the only thing Intel really has going for it these days is server grade stuff.

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Well now that intel has discontinued optane. I don't really see anything interesting about their server stuff. AMD is kind of beating them there as well. And with next gen AMD cpu's having AVX512. Intel might be in trouble for a while. They will bounce back at some point. But they really need to do something about power efficiency. Along with Nvidia.

Edited July 30, 2022 by ozlay

[ENTERPRISE]

Not to mention the obvious economic issues. Penny pinching is back since the interest rate hikes and cost of living. Buying that nice new CPU from either camp has become more of a luxury for some...a luxury too far.