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View Full Version : Intel's profit drops 38% on decreasing processor sales!!

saiko
04-20-2006, 02:35 PM
Intel Q1 earnings result met the expectations of investor, but lower processor, chipset and flash memory sales brought the first substantial revenue and profit decline in several quarters. Reported revenues were $8.9 billion, 32% below the first quarter of 2005; profit dipped 38% in the same time frame.

Chief executive officer said that Intel was confronted with "moderating PC growth" over the past few quarters. He blamed slower chip-level inventory reductions for Intel's lower sales. Media and industry sources speculated that Intel may also have lost more market segment shares to AMD in several markets, including the higher-margin server segment. During a conference call, Intel said that the company in fact may have lost more market shares to AMD in Q4 2005 than previously anticipated, but ensured analysts that its market share remained stable during Q1 2006.

The news is from <<here (http://www.tgdaily.com/2006/04/19/intel_q1_2006/)>>
CelticArtist
04-20-2006, 04:44 PM
ouch, must hurt their stock. I use AMD anyway though, Intel is too expensive.
minus23
04-20-2006, 07:53 PM
I'm just guessing but I bet AMD posts down profits over last year aswell. Unless they gained market share. I think the chip industry is feeling the switch from fasters Ghz to multiple cores. This time last year someone could have been using a 3.2 Ghz chip that was bought the year before that even. People now see things like X23.2 as a chip model number and aren't used to what to look for yet.

Just my 2 cents.
arvid
04-20-2006, 08:50 PM
That's possible, I just got rid of my P4 2.0GHz and replaced it with an AMD X2 4200+, it's actually at 2.2GHz, so I more than doubled my performance with just 200MHz extra? I guess so, but it's still kind of hard to understand :D
DeadlyFreeze
04-20-2006, 10:17 PM
Mhz dont translate between AMD and Pentium, its all about core architecture.

It would be intresting if some can get the numbers on AMD, I wouldnt be suprised at all to see AMD taking a big chunk out of Intels markets. Atleast when it comes to the 'enthusiast market', but Intel still owns the OEM market.
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04-20-2006, 10:18 PM
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