Bill,
The sub-$1000 PC was for INTC a wake-up call the same way the 1995 arrival of the Internet was for MSFT. And just as MSFT turned on a dime in response to its challenge, so did INTC
Well said.
NSM, after having acquiring upstart Cyrix amid great fanfare, was forced to fold its PC processor tent altogether
The article fails to mention petty details like this, or the fact that INTC has somewhere around $12B in cash, while its rivals are struggling to keep their heads above water.
Re: INTC's "fluff" valuation
INTC is, IMHO deserving of a premium multiple. To say they should trade at a below market multiple is ludicrous.
Re: "Intel Inside" no longer important
I believe the exact opposite will prove to be true. Why don't we ask someone like T. Viola who actually works in the industry whether he prefers an "Intel Inside" or a chip from AMD. I wonder if the author interviewed tech people before printing this(that was rhetorical BTW) The article also fails to mention how its competitors' chips crash machines at demonstrations(Athlon), while Intel's goes about its duty.
All in all, it's one thing to say that challenges are ahead. That is obvious, especially in the extremely competitive tech-land. However, it is another thing altogether to link this with shortcomings of current strategies, which IMHO they did not even come close to doing.
BK |
