On Intel earnings:
dailynews.yahoo.com
From the article:
The company also has been fighting a tough price war at the low end of the personal computer business with rival Advanced Micro Devices Inc. (NYSE:AMD - news) in an battle to win market share.
In a conference call with analysts, Intel executives said the company had succeeded in regaining market share in the low end of the PC market during the second quarter. The average selling prices of microprocessors fell in the second quarter compared with the first quarter, Intel said.
Analysts had forecast that Intel's revenues would be down sequentially -- or from the first quarter to the second -- mostly because of lower average selling prices.
"It looks to me that the shortfall was all revenue induced," said Mark Edelstone, a Morgan Stanley Dean Witter analyst. "Revenues were $150 million below where we were estimating."
Intel said microprocessor unit shipments declined slightly in the second quarter from the first. Motherboard unit shipments were lower, chipset unit shipments were essentially flat, while flash memory unit shipments were up, Intel said.
My take is that the only potentially ominous part is the decrease in units shipped, but that may simply reflect the ongoing price war with AMD. And the article indicates that the decrease was minimal. I haven't seen numbers regarding high-end Pentium III chips shipped.
Reduction in the selling price of microprocessors should not be a particular concern to us, -- after all, that impacts Dell's costs, and the consensus among analysts is that the revenue shortfall was due to a reduction in price rather the decrease in units shipped. Intel's CC comments seemed to reflect a generally upbeat attitude towards the quarter.
Now it could be that these results will dampen the enthusiasm of the momentum investors, but since those guys don't matter over the long run I think it's a non-issue.
And remember, the quarter isn't over for another couple of weeks.
TTFN,
CTC |
