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> Seems like they should have billions in the bank to burn on whatever they need to get back on top. It's a persistent extreme exaggeration, that's all it is.
by adventured 7y ago
> Seems like they should have billions in the bank to burn on whatever they need to get back on top.
It's a persistent extreme exaggeration, that's all it is. It's a projection of what some people want to have happen (death to Intel, rise of AMD; if AMD dominates, it'll then be death to AMD), rather than a reflection of what reality actually looks like. Aka wishing it were so.
What does reality actually look like? Intel's profits keep climbing and climbing.
2018 was the best year Intel has ever had in its entire history. $70.8 billion in sales, $23 billion in operating income. Operating income skyrocketed 58% in just two years. The extraordinary level of profitability they're sitting at has only been reached by a select few companies in all of corporate history.
Intel generated more operating income just last quarter than AMD has net in its entire 50 year history combined.
But surely sales must have declined then, given the scaremongering, even if profitability remained high? Nope. 2018 was a great year for sales growth for Intel, fastest growth they've seen in a decade.
They went from $55b in 2015 to $59b to $62b to $70b in sales, after many years of near-stagnation.
Surely Intel is seeing really bad erosion then in its most recent quarterly results? No - $6.5 billion in operating income last quarter. More than AMD's sales for the last four quarters combined. And one of the best quarterly profit figures Intel has ever generated.
- sah2ed 7y agoFunny that you bring up past numbers on revenue and profit. Andy Grove, Intel’s most celebrated CEO, used to sound a note of warning about relying too much on such metrics for decision-making. Revenue, which is really about what has already happened, is a lagging indicator of bad news. I have no horse in this race, but I think it is instructive to point out that after the iPhone launched in 2007, BlackBerry maker RIM would go on to attain impressive revenue numbers in its history starting in 2009 ($11,065m) and 2010 ($14,953m) before peaking in 2011 ($19,907m). It has been on a downward trajectory ever since.