Intel's Profits Plummet

Intel's Profits Plummet

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The slowing demand for computers has knocked Intel's profits from $2.3 billion to $234 million in the last quarter.

The Christmas period is usually a boom time for Intel, with children holding their parents hostage for a new computer, but the chip manufacturer suffered a 90% drop in profits as sales slid 23% down to $8.2 billion.

Even the New Year won't see any great improvements; the company has only predicted sales of $7 billion for this first quarter.

For the fourth largest chip manufacturer in the world, this is dire news, but it's not all due to lower sales: $1 billion of the lost profits was due to a writedown value of Intel's investment in Clearwire.

Clearwire is working on a wireless broadband that can be incorporated into chips, but there are fears that the credit crunch and the growing popularity of smaller net-book computers, which use lower profit margin processor chips, will impede its business plans.

Source: BBC courtesy of SilentD
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maybe you guys should stop reporting bad news like this because you are only going to make it worse.

When people hear how intel's sales drop they are going to be less inclined to buy and then that would mean cutting jobs which thoes people will not buy stuff which means more jobs are cut.

you guys should start trying to find some positive news instead

Murmur95:
maybe you guys should stop reporting bad news like this because you are only going to make it worse.

When people hear how intel's sales drop they are going to be less inclined to buy and then that would mean cutting jobs which thoes people will not buy stuff which means more jobs are cut.

you guys should start trying to find some positive news instead

Much as I agree in theory, not reporting news because it isn't good news isn't really a philosophy I can bring myself to agree with...

Murmur95:
maybe you guys should stop reporting bad news like this because you are only going to make it worse.

When people hear how intel's sales drop they are going to be less inclined to buy and then that would mean cutting jobs which thoes people will not buy stuff which means more jobs are cut.

you guys should start trying to find some positive news instead

Theory is in good nature, but the world isn't a wonderful happy place. This is reported on because it is news. In fact, this is gaming related news and people on these forums come here to read stories like this.

AMD and Intel are both hurting... hopefully neither of them really tank - having both companies going strong keeps the market fairly balanced and the improvements rolling. Having one company dominate helps no-one but that company.

It's been a really dodgy year. Intel still posted a profit, despite a serious devaluation. If that hadn't had happened, they'd have made 1.3 billion still.

It's not a show stopper for Intel. They might restructure some bits, but i don't see them going anywhere soon.

 

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