Will Q2 be "puking", or "crowing"?
It could go either way. The last time Intel started a price war (flash, Q404), we were bloodied up pretty bad. It's likely to turn out badly again this quarter, with Intel willing to hold share at whatever cost till the Conroe cavalry arrives.
On the other hand, some hints suggest otherwise:
"Bruce Diesen, analyst at Handelsbanken Capital Markets, predicted a profits warning would soon be forthcoming from Intel Corp. where he said processor volumes fell 21 percent and processor prices had fallen 40 percent compared with April 2005."
eetimes.com
"The PC market remains strong, with unit sales of personal computers running 13 to 15 percent ahead of last year's levels," Scalise said."
eetimes.com
If overall units are up 14%, and Intel's units fell 21%, we obviously would have gained share. Lots of share. But that seems way too rosy. Have AMD prices at the dominant low end been slashed to keep pace, or were Hector's comments that he wouldn't react to his competitor's inventory missteps correct?
I, along with Drbes, seem to be one of the few board longs who hasn't sold yet. Bought from 1998 through 2003, and no stock sales ever. I feel at times like the frog in a pot that is slowly being heated. This sure is an overly dramatic stock to hold. Still hoping that all turns out well in the end. |
