An empty Fab is a terrible thing to waste, especially when it is leading edge. By the end of the year Intel will, by my back of the envelope calculation, be sitting with the equivalent of one idle 22nm Fab (cost $5B). What would you do if you were Paul Otellini?
Across the valley, in Cupertino, you have Tim Cook, whose modus operandi is … Read More
Paul Otellini’s greatest fear in his chase to have Intel win the Smartphone and Tablet space is that he opens the door to significant ASP declines in his current PC business. This is the Innovator’s Dilemma writ large. In 2011, Intel’s PC business (excluding servers) was $36B at an average ASP of $100. Within that model is an Ultra … Read More
I’ve often wanted to publish a book with nothing but photos of police cars, so that people wouldn’t have to slow down and gawk at them when they have someone pulled over on the side of the freeway. Intel roadmaps seem to have the same effect on people. No matter what is on them, even if there’s nothing really new, they… Read More
Since the introduction of Apple’s iPhone and then the follow on iPAD, it has been Wall Streets frame of reference that Intel would be playing defense as the PC market slid into oblivion and therefore a Terminal Value should be placed on the company. Intel’s Q4 2011 earnings conference call provided a nice jolt to the analysts as Paul… Read More
Back in the 1990’s, Richard Branson, the legendary Entrepreneur and investor was asked how to become a millionaire, and he allegedly responded, “There’s really nothing to it. Start as a billionaire and then buy an airline.” I think the same principle can be applied to a large part of the Semiconductor… Read More
Every Semiconductor Analyst has given Intel the once over a hundred times about their slowing PC unit volume. They are looking in the wrong place because the true secret of the Q2 earnings – in my humble opinion – is that Intel’s factories are full and parts are on allocation. What???
Check it out, high-end, 8 and 10 core XEON processors… Read More
