Those who expected a bloodbath after INTC and BRCM cuts did not realsie this strange kind of recession even has higher R&D by INTC.. that means that INTC is little higher.. and that is the reason the market is good..
<<Despite the dour first-half economic outlook, Intel will increase research and development spending to $4.3 billion in 2001 from $3.9 billion in 2000, according to its earnings statement. Capital spending for 2001 will increase to about $7.5 billion in 2001 from $6.7 billion in 2000.
Looking at Intel's plans to forge ahead with spending, some analysts felt encouraged.
"I think Intel almost feels the worst is behind it," said Nathan Brookwood, principal analyst at Insight64, in Saratoga, Calif.
Intel is being very cautious in its predictions, "but it's not cutting back at all on some of the long-term essential issues, such research and development and manufacturing, so I was encouraged,' he said. "Intel is clearly hoping for a rebound in the second half."
Indeed, the company is shooting for the fastest introduction yet for its Pentium 4. Looking ahead to the second half of the year, the company is working to launch its new 0.13-micron manufacturing process and beginning preparations for a move to larger 300-millimeter wafers, which will decrease manufacturing costs by creating more chips per wafer.
"We are pleased with the launch and ramp of our new microarchitecture, the Pentium 4 processor," said Paul Otellini, executive vice president and general manager of Intel Architecture Group. "We are rapidly accelerating from hundreds of thousands of units in the fourth quarter to well above 1 million units this quarter.
"Our plan is to use the slowdown to accelerate the ramp of the Pentium 4 and to transition as quickly as possible from Pentium III," Otellini said. "We want to be in a position to use the first half slowdown to reposition all of our products...to be in a stronger position should that growth occur."
Intel had stated earlier that Pentium 4 shipments would surpass Pentium III early in 2002. Otellini said Intel's goal is now to reach that point this year.
"Intel needs to do that to get people excited about why they would want a new PC," Brookwood said. >> |
