I think the biggest cause is the surge in ARM powered devices like the Apple's iPad, Kindle Fire, and Nook Tablet. Intel is finding itself yet another victim of the Post-PC world that it believes simply does not exist.
Post PC world, lol. Idiot. PCs are now in every home and almost as common as the TV. Many families like mine have multiple PCs/Laptops.... and then for toys we have smart phones and tablets.
But let's be CLEAR. You can't do real work on a cell phone or tablet. At best you can write some short emails and surf the web. You won't be editing spreadsheets, graphic design, CAD, programming, writing a book or doing really anything useful on a tablet and never will. A keyboard and mouse is required to be truly productive and that will never change. Why you ask? Because we are HUMANS with hands, and our hands are not getting any smaller.... we also can't work on a 4" or even a 10" little screen with much speed.
Post PC world is the most ridiculous phrase I've heard. We'll see the rise in popularity of other gadgets, but like portable DVD players 8 years ago we didn't see the end of the TV. PCs are going no where.... imagine going to the office cubicle and they hand you a 10" tablet to do your days work on, LOL LOL LOL
That's certainly true of the industrial/business market, but in the consumer sphere, most people don't go home and run CAD on a computer they bought themselves. 95% of non-gaming consumer use cases consist of email, web, and video. The most computationally taxing workload that a non-gamer will likely encounter is decoding h.264 video.
My dad just bought my little sister a new, fast PC.
She plays a few games, sure, but simple looking games. The PC she had before this one was a small form factor PC.
Now though she's got a full fledged power monster under her control, for the sole reason of video editing. She's been reading stories on youtube and started to make her own videos at some point. Along with her interest in photography she's now decided to go deeper into desktop publishing.
Mind you this is one sweet girl that litteraly does not hurt a fly, and she's always been so into animals we where sure she'd do something like animal caretaker or animal nurse. Oh, and she also has a tablet. Which she does use, to watch youtube video's in bed and the sort. But any work gets done on the PC.
Post PC era my ass. Kids these days are just as inventive as the kids of yesterday and they will find new ways to make use of the power nothing but a desktop can bring them, and then demand more.
Give her a few years and she'll be posting half nude videos of her and her friends dancing and some old guy will be watching it. I worry about what my 9 year old will do, especially since her mom and I are split...
Balony. You haven't been paying attention. Intel has been breaking quarterly revenue, profit and margin records for about 7 or 8 quarters in a row todate primarily based upon emerging markets and data centers. They were on track for another record breaking quarter until being hit with HDD shortages
How is this the "bigger problem" in what sense? This is a company that was projecting ~$15 billion and revised to ~$14 billion (revenue, not earnings). This is a 7% revenue projection reduction. That might not be commonplace, but they're a business affected by a natural disaster, I'm sure they're not shrugging it off like it doesn't matter, but they're changing projections to keep themselves from falling short, which when it comes to investors is worse. I hardly think this article reflects the demeanor of Intel and its investors, the face of the company needs to be confident, to act like this isn't a big deal to reassure investors.
I think the bigger problem would be the people affected by the flood. If you're trying to make a comment that a company shouldn't be this big, this is hardly the article for it.
Exactly. If someone were thinking in these companies that mass produce SSD drives. Now is the time for reinvesting in a lower cost higher capacity drives. We don't need a bunch of 240GB 510MB/s drives. How about filling the market with 500GB 100MB/s drives from the previous generation controllers. Do not discontinue them, reinvest in them to replace HDDs.
Rough ? Maybe for AMD, but not for Intel. They had forecasted another record breaking quarter before HDDs got hit. So maybe they won't break records this quarter, but they'll still be getting pretty huge revenue, profit and margin numbers. And Ultrabooks coming out now and ramping in Q1 use primarily SSDs and not HDDs.
Any set ups with SSD are unaffected. Some player in the SSD market should be looking to a ~$100 500GB SSD, but I doubt it'll happen.
Where this hurts is the business PC market. Most of the machines there are mass quantity generic 250-500 GB HDD's. These were as low as $25-30, probably less OEM, and are now in the $80-120 range. Almost certainly, Dell and HP are holding back orders of HDD's until the price returns to normal. And since most of their business customers are on PC refresh cycles, waiting a few months isn't going to affect them long term.
In real life: This is the start of the ARM effect.
100 million tablets sold/year. 250 million smartphones sold/year. Intel have to loose some customers to them. The 8% fall that Intel predict is inline with ARM.
The average selling price of iPad is higher then average price of a PC. Many tablet buyers skips net-tops effectually killing that market that used ATOM.
And it will be worse for Intel. Yes. ARM is slower then Intel on an unoptimized system, but its fast enough starting Q1 next year. You get 50% of Intels performance for 10% of an Intel CPU price.
Since 2006 AMD have not pushed Intel to release new products. This have made Intel lazy. Intel: 2006-->2011 Intel have dubbed its performance. ARM: 2007--->2011 Increased performance 17x.
Ivy Bridge will use 77 watt + motherboard. Quod core 2.5ghz ARM 2watt. Cost 25 dollar and will have at least 50% of Intel's performance.
Before Windows and X86, RISC and *nix ruled. We have had a 12-15 year there windows and X86 have grown stronger. We now see the comeback of *nix and RISC/PPC. Almost 500 million *nix mobile devices sold /year and 8 billion performance ARM sold/year.
"The average selling price of iPad is higher then average price of a PC. Many tablet buyers skips net-tops effectually killing that market that used ATOM."
Yep, except that's one of Intel's lower margin product lines, which is one of the reasons they never pushed Atom that much and pretty much lost the tablet market. Servers are where they make their huge margins. Those fancy tablet and smartphones really can't shine without a huge datacenter behind them, and Intel is all over that market. ARM is totally unproven in this space, and few except people with vested financial interests (e.g. Nvidia, various ARM startups) claim to know if ARM can scale.
"Ivy Bridge will use 77 watt + motherboard. Quod core 2.5ghz ARM 2watt. Cost 25 dollar and will have at least 50% of Intel's performance."
You seriously think ARM is going to have anywhere near 50% of Ivy Bridge performance in the same time frame?
Is that why most Tablet sales are failing minus the iPad??
ARM provides a niche product with no profit margin. All this ARM technology is boosting Data Center sales and growth. Hence Intel is booming because of it.
I doubt the expensive but still available HDs are the real cause of Intel's $1 Billion drop in revenues for the quarter. Perhaps the never ending worldwide economic meltdown is more likely. Ultrabooks are a joke and few people are interested in paying outrageous prices for a label, even with intel bribe money to OEMs.
AMD on the otherhand is selling virtually every CPU, GPU and APU they can produce. While their sales are compromised with GloFo and TSMC, AMD is still doing OK considering the Fab hurdles they are enduring.
I agree with you that I am not inpressed with the Ultrabook concept, because it is too expensive for the product. I would prefer something like the HP dm1z at half or 1/3 the price.
But I bet AMD would be glad to have intel's sales and profits. Selling everything you produce at a low ASP is a small positive when the reason is that you have lousy production facilities.
What you are talking about is a Netbook. If you want cheap, there it is.
The rest of us wanted small footprint with a more powerful set up. SSD's, 17W processors that do not require heavy cooling, and no discrete graphics card. Near instant on.
Ultrabooks are Macbook Air's that are $200-300 cheaper without the influence of Apple.
"AMD on the otherhand is selling virtually every CPU, GPU and APU they can produce. While their sales are compromised with GloFo and TSMC, AMD is still doing OK considering the Fab hurdles they are enduring. "
Where are earth did you hear this?? Facts please. Not your wildly inaccurate guesses at AMD's production and sales. AMD losing market share in the profitable business PC and datacenter/server markets. Explain to me how they are selling "ALL" of their CPU's.
Haha... that's rich, coming from the biggest anti-AMD fanboy on here. :) But I digress.
Fusion is selling very well (it has sold out in the past) and Zambezi in particular is doing very well; there's a few articles about them if you type in "amd sells out" (no joke) into Google. Server-wise, it's probably a bit inaccurate to say AMD is selling everything it can produce in this area, and the same could be said for their discrete GPUs. Some evidence would be helpful in this case.
I did read something interesting about AMD's future plans for low-power servers which may be of interest:
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TEAMSWITCHER - Monday, December 12, 2011 - link
I think the biggest cause is the surge in ARM powered devices like the Apple's iPad, Kindle Fire, and Nook Tablet. Intel is finding itself yet another victim of the Post-PC world that it believes simply does not exist.Fleeb - Monday, December 12, 2011 - link
What post PC world?fic2 - Monday, December 12, 2011 - link
Both HD shortage and ARM powered devices should hit MS just as hard as Intel.p05esto - Monday, December 12, 2011 - link
Post PC world, lol. Idiot. PCs are now in every home and almost as common as the TV. Many families like mine have multiple PCs/Laptops.... and then for toys we have smart phones and tablets.But let's be CLEAR. You can't do real work on a cell phone or tablet. At best you can write some short emails and surf the web. You won't be editing spreadsheets, graphic design, CAD, programming, writing a book or doing really anything useful on a tablet and never will. A keyboard and mouse is required to be truly productive and that will never change. Why you ask? Because we are HUMANS with hands, and our hands are not getting any smaller.... we also can't work on a 4" or even a 10" little screen with much speed.
Post PC world is the most ridiculous phrase I've heard. We'll see the rise in popularity of other gadgets, but like portable DVD players 8 years ago we didn't see the end of the TV. PCs are going no where.... imagine going to the office cubicle and they hand you a 10" tablet to do your days work on, LOL LOL LOL
Powerlurker - Tuesday, December 13, 2011 - link
That's certainly true of the industrial/business market, but in the consumer sphere, most people don't go home and run CAD on a computer they bought themselves. 95% of non-gaming consumer use cases consist of email, web, and video. The most computationally taxing workload that a non-gamer will likely encounter is decoding h.264 video.TSS - Tuesday, December 13, 2011 - link
My dad just bought my little sister a new, fast PC.She plays a few games, sure, but simple looking games. The PC she had before this one was a small form factor PC.
Now though she's got a full fledged power monster under her control, for the sole reason of video editing. She's been reading stories on youtube and started to make her own videos at some point. Along with her interest in photography she's now decided to go deeper into desktop publishing.
Mind you this is one sweet girl that litteraly does not hurt a fly, and she's always been so into animals we where sure she'd do something like animal caretaker or animal nurse. Oh, and she also has a tablet. Which she does use, to watch youtube video's in bed and the sort. But any work gets done on the PC.
Post PC era my ass. Kids these days are just as inventive as the kids of yesterday and they will find new ways to make use of the power nothing but a desktop can bring them, and then demand more.
JonnyDough - Wednesday, December 14, 2011 - link
Give her a few years and she'll be posting half nude videos of her and her friends dancing and some old guy will be watching it. I worry about what my 9 year old will do, especially since her mom and I are split...Hector2 - Monday, December 12, 2011 - link
Balony. You haven't been paying attention. Intel has been breaking quarterly revenue, profit and margin records for about 7 or 8 quarters in a row todate primarily based upon emerging markets and data centers. They were on track for another record breaking quarter until being hit with HDD shortagesBSMonitor - Tuesday, December 13, 2011 - link
The VAST majority of predictable PC sales is the business PC. Tablets are not in any way cutting into business PC sales.Grow up
darckhart - Monday, December 12, 2011 - link
I think the bigger problem is that companies throw around numbers like a BILLION dollars earnigs loss in a quarter like its common place.GuinnessKMF - Monday, December 12, 2011 - link
How is this the "bigger problem" in what sense? This is a company that was projecting ~$15 billion and revised to ~$14 billion (revenue, not earnings). This is a 7% revenue projection reduction. That might not be commonplace, but they're a business affected by a natural disaster, I'm sure they're not shrugging it off like it doesn't matter, but they're changing projections to keep themselves from falling short, which when it comes to investors is worse. I hardly think this article reflects the demeanor of Intel and its investors, the face of the company needs to be confident, to act like this isn't a big deal to reassure investors.I think the bigger problem would be the people affected by the flood. If you're trying to make a comment that a company shouldn't be this big, this is hardly the article for it.
BSMonitor - Tuesday, December 13, 2011 - link
Exactly. If someone were thinking in these companies that mass produce SSD drives. Now is the time for reinvesting in a lower cost higher capacity drives. We don't need a bunch of 240GB 510MB/s drives. How about filling the market with 500GB 100MB/s drives from the previous generation controllers. Do not discontinue them, reinvest in them to replace HDDs.Mathieu Bourgie - Monday, December 12, 2011 - link
Speaking of Intel's SSDs, do you have any news on Intel's 510 series replacement, the upcoming Cherryville?According to your own news back in September: http://www.anandtech.com/show/4808/intel-discloses... Cherryville is supposed to arrive in Q4.
chizow - Monday, December 12, 2011 - link
Gonna be a rough holidays for Intel....Hector2 - Monday, December 12, 2011 - link
Rough ? Maybe for AMD, but not for Intel. They had forecasted another record breaking quarter before HDDs got hit. So maybe they won't break records this quarter, but they'll still be getting pretty huge revenue, profit and margin numbers. And Ultrabooks coming out now and ramping in Q1 use primarily SSDs and not HDDs.Hector2 - Monday, December 12, 2011 - link
While some models have hyrid mixing of SSD & HDD technology, many of the Ultrabooks are 100% SSD, so those ought to unaffected by HDD shortagesBSMonitor - Tuesday, December 13, 2011 - link
Any set ups with SSD are unaffected. Some player in the SSD market should be looking to a ~$100 500GB SSD, but I doubt it'll happen.Where this hurts is the business PC market. Most of the machines there are mass quantity generic 250-500 GB HDD's. These were as low as $25-30, probably less OEM, and are now in the $80-120 range. Almost certainly, Dell and HP are holding back orders of HDD's until the price returns to normal. And since most of their business customers are on PC refresh cycles, waiting a few months isn't going to affect them long term.
shompa - Monday, December 12, 2011 - link
In real life: This is the start of the ARM effect.100 million tablets sold/year. 250 million smartphones sold/year. Intel have to loose some customers to them. The 8% fall that Intel predict is inline with ARM.
The average selling price of iPad is higher then average price of a PC. Many tablet buyers skips net-tops effectually killing that market that used ATOM.
And it will be worse for Intel. Yes. ARM is slower then Intel on an unoptimized system, but its fast enough starting Q1 next year. You get 50% of Intels performance for 10% of an Intel CPU price.
Since 2006 AMD have not pushed Intel to release new products. This have made Intel lazy.
Intel: 2006-->2011 Intel have dubbed its performance.
ARM: 2007--->2011 Increased performance 17x.
Ivy Bridge will use 77 watt + motherboard.
Quod core 2.5ghz ARM 2watt. Cost 25 dollar and will have at least 50% of Intel's performance.
Before Windows and X86, RISC and *nix ruled. We have had a 12-15 year there windows and X86 have grown stronger. We now see the comeback of *nix and RISC/PPC. Almost 500 million *nix mobile devices sold /year and 8 billion performance ARM sold/year.
Metaluna - Monday, December 12, 2011 - link
"The average selling price of iPad is higher then average price of a PC. Many tablet buyers skips net-tops effectually killing that market that used ATOM."Yep, except that's one of Intel's lower margin product lines, which is one of the reasons they never pushed Atom that much and pretty much lost the tablet market. Servers are where they make their huge margins. Those fancy tablet and smartphones really can't shine without a huge datacenter behind them, and Intel is all over that market. ARM is totally unproven in this space, and few except people with vested financial interests (e.g. Nvidia, various ARM startups) claim to know if ARM can scale.
"Ivy Bridge will use 77 watt + motherboard.
Quod core 2.5ghz ARM 2watt. Cost 25 dollar and will have at least 50% of Intel's performance."
You seriously think ARM is going to have anywhere near 50% of Ivy Bridge performance in the same time frame?
BSMonitor - Tuesday, December 13, 2011 - link
Is that why most Tablet sales are failing minus the iPad??ARM provides a niche product with no profit margin. All this ARM technology is boosting Data Center sales and growth. Hence Intel is booming because of it.
Everyone loves a Xeon.
Beenthere - Monday, December 12, 2011 - link
I doubt the expensive but still available HDs are the real cause of Intel's $1 Billion drop in revenues for the quarter. Perhaps the never ending worldwide economic meltdown is more likely. Ultrabooks are a joke and few people are interested in paying outrageous prices for a label, even with intel bribe money to OEMs.AMD on the otherhand is selling virtually every CPU, GPU and APU they can produce. While their sales are compromised with GloFo and TSMC, AMD is still doing OK considering the Fab hurdles they are enduring.
frozentundra123456 - Monday, December 12, 2011 - link
I agree with you that I am not inpressed with the Ultrabook concept, because it is too expensive for the product. I would prefer something like the HP dm1z at half or 1/3 the price.But I bet AMD would be glad to have intel's sales and profits. Selling everything you produce at a low ASP is a small positive when the reason is that you have lousy production facilities.
BSMonitor - Tuesday, December 13, 2011 - link
What you are talking about is a Netbook. If you want cheap, there it is.The rest of us wanted small footprint with a more powerful set up. SSD's, 17W processors that do not require heavy cooling, and no discrete graphics card. Near instant on.
Ultrabooks are Macbook Air's that are $200-300 cheaper without the influence of Apple.
Grow up
BSMonitor - Tuesday, December 13, 2011 - link
"AMD on the otherhand is selling virtually every CPU, GPU and APU they can produce. While their sales are compromised with GloFo and TSMC, AMD is still doing OK considering the Fab hurdles they are enduring. "Where are earth did you hear this?? Facts please. Not your wildly inaccurate guesses at AMD's production and sales. AMD losing market share in the profitable business PC and datacenter/server markets. Explain to me how they are selling "ALL" of their CPU's.
Fanboy, get off the Kool-Aide
silverblue - Wednesday, December 14, 2011 - link
Haha... that's rich, coming from the biggest anti-AMD fanboy on here. :) But I digress.Fusion is selling very well (it has sold out in the past) and Zambezi in particular is doing very well; there's a few articles about them if you type in "amd sells out" (no joke) into Google. Server-wise, it's probably a bit inaccurate to say AMD is selling everything it can produce in this area, and the same could be said for their discrete GPUs. Some evidence would be helpful in this case.
I did read something interesting about AMD's future plans for low-power servers which may be of interest:
http://www.theregister.co.uk/2011/11/14/amd_optero...
JonnyDough - Wednesday, December 14, 2011 - link
to ALL hardware vendors? Kinda sounds like Intel is just trying to make excuses and/or the press.