DJ Intel CEO Denies Losing Market Share To AMD
Dow Jones News Service ~ September 23, 2000 ~ 12:25 am EST
By Anne Brady
Of DOW JONES NEWSWIRES
PHOENIX (Dow Jones)--Intel Corp. (INTC) Chief Executive Craig Barrett on Friday denied that his company's decline in revenue growth was due to losing market share to competitor Advanced Micro Devices Inc. (AMD) and said he expects demand for better, faster, less expensive silicon transistors to continue growing for 10-15 years.
"We are still anticipating growth this quarter, just not what we had expected, " Barrett noted. "We didn't see the increase in sales (in Europe) that we had expected to see."
Barrett attempted to downplay the significance of Intel's announcement late Thursday that it was lowering its third-quarter revenue projections "primarily due to weaker demand in Europe." Some stock analysts Friday blamed the declining revenues on Intel losing market share to AMD and other competitors.
"Analysts can say anything they want because they don't have to back it up," responded Barrett, speaking with Dow Jones Newswires at an evening reception at Semiconductor Research Corp.'s TechCon 2000 event at the Pointe Hilton at Tapatio Cliffs resort in Phoenix. Asked specifically if Intel had lost market share to AMD, Barrett said, "I don't think so."
Intel set a record Friday for the number of shares of a company trading hands in one day, with more than 300 million shares traded. However, Barrett noted that represents less than 5% of the total number of Intel shares outstanding, indicating most investors are sitting tight.
"Come see me in a week," Barrett said, hinting he expected the volatility to subside.
The stock ended the day down $13.55, or 22%, at $47.94.
Later, speaking at a TechCon dinner banquet, Barrett said he expects the industry to continue to double the number of transistors produced each year for another 10-15 years, at which time they may be replaced by "a new switch."
"I'm convinced a new switch is not going to be commercially viable for 15 years. For the next 10 or 15 years, concentrate on what you've been doing," he advised the audience of corporate engineers, students and university professors.
He challenged researchers to develop still smaller chips with more functionality and 100% yield at a lower cost.
-By Anne Brady, Dow Jones Newswires; 602-258-2003
(END) DOW JONES NEWS 09-23-00 |
