Yeah I think they will pull ahead too. But that is not the point. The fact remains that INTC would rather have you buy a Pentium III and not a Celeron at 20-30% of a Pentium III price. INTC would rather sell a Rolls Royce than a Yugo - but they have not much choice. Thank you AMD and National. What might happen is their pricing on the low end may recover. It still will not replace the 'lost' revenues from Pentium III sales that did not happen.
The fact is that their revs got thumped in Q2 - a 14% drop in the Architecture group sales and that's large by any standard - sequentially expected or not. Remember we are still in the early stages of a semi recovery and note also that this large decline of 14% came against a Q2 backdrop of possibly 50-75+% YOY increases in PC shipments in Japan and the rest of Asia. Kind of pathetic if you ask me...
Anyway I am now tapped out on INTC - went through the quarterly monopolistic allocation already. Off to the beach now.
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On first glance, MOT, another expensive stock, did come through: +3c.
''The improved results stem from good growth in
semiconductors and very significant growth in digital wireless telephones, as well as a recovery in Asian markets and the
benefits of the company's profit improvement programs.''
....
Segment sales increased 9 percent to $2.0 billion and orders rose 20 percent to $2.1 billion. The segment recorded an
operating profit of $80 million compared with an operating loss of $899 million a year ago, which included a large restructuring
charge. The segment recorded an operating loss last year, even when this charge is excluded.
Orders increased in all regions, led by Asia and Japan. Sales were higher in all regions except Europe. Among major market
segments, sales and order growth was led by wireless communications. Components, networking and computing, and
transportation market segments sales and orders were also higher.
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This one is in your VTSS category though. As mentioned earlier, most (but not all) of the semis are expensive but the fools continue to add money to the table. |
