Ref < I really think INTC should take a little more control of their own destiny and make some comment about current quarter expectations.>
Historically, Intel tends to warn of earning and demand slowdown, ahead of its customers. This is in sharp contrast to other companies. Intel has warned of demand problems and then companies like Compaq, Dell , HP warn later, sometimes several weeks later. This implies that Intel has a better handle on demand forecast than its customers !
[ Two or three years ago Intel warned of Q1 demand problems around February 20, while Compaq and HP admitted to problems around March 30 ! Intel also warned in September this year, and Dell warned weeks later. ]
However in practice, this causes greater stock volatility. First on the Intel warning, the Intel stock takes a hit for the 'perceived Intel only' problem. Next when its Customers warn, the Intel stock takes further hits, because the analysts begin anticipating further warnings from Intel. I have seen this happen several times, and Intel never makes further comments. Intel insists that its earlier guidance still holds
I hope that the above historical trend hold, and Gateway's problems are the same problems announced in September, when Intel warned that Q4 would be below its earlier expectations. |
