4 ms·

> Intel is far from incompetent, they just decided to get advantage of their monopoly position to reap as big profits and margins as they could get for the long

> Intel is far from incompetent, they just decided to get advantage of their monopoly position to reap as big profits and margins as they could get for the longest possible time That sounds exactly like an incompetent strategy by being lazy ignoring possible competitors.

lmm 6y ago
Nothing incompetent about making a fat profit. We'd like to imagine that companies should always innovate as hard as possible, but it's not always the winning strategy.
- olliej 6y ago
  I think the point that they were trying to make is that sabotaging long term profits by maximizing short term profits is less profiterole over the long term. Which would make it incompetent for the company, but because of earlier cashing out, possibly not incompetent for the specific people making those decisions.
  - lmm 6y ago
    We'd like to think that long term strategies are always better, but again that's not always true. Sometimes it's better to realise some profits now.
    - mekster 6y ago
      But Intel saw it coming when they're left out of the mobile market and ARM had been advancing rapidly for over a decade, not to mention x86 has been too old now.
      - lmm 6y ago
        That doesn't necessarily mean that there was a better path available to them. If Intel moved away from x86, a lot of their strategic advantages would disappear; they'd be one player among many, and they wouldn't have the vertical integration advantages of people actually making full ARM-based systems. Meanwhile there's plenty of money to be made from x86 for decades yet, from clients that put a high value on backward compatibility (which Apple don't, not in the same way - after all, they've done this twice already).
        fauigerzigerk 6y ago
        >If Intel moved away from x86, a lot of their strategic advantages would disappear; they'd be one player among many They are in fact one player among many. Their strategic advantages have evaporated. The entire mobile space passed them by and now AMD is seriously threatening their x86 business. Something has clearly gone very wrong at Intel. Shareholders can't be happy about that.
        lmm 6y ago
        > The entire mobile space passed them by True, but only a small minority of companies that went into that space made money on it. Any Intel mobile division could very easily have been the next Blackberry or Nokia. Staying out of that fight may well have been the best decision for their shareholders. > AMD is seriously threatening their x86 business. If they lose the profitable server segment to AMD then that's a serious problem, I'd agree with that. That's far from settled though.
        mekster 6y ago
        I'm in no position to say but how about just make a division to develop ARM based CPU and take some part of the pie while keeping the x86 cash flow coming?
        lmm 6y ago
        The conglomerate discount exists for a reason. People who want to invest in ARM know where to find it; it makes sense for Intel to stick to their strategic advantages.

lmm 6y ago

Nothing incompetent about making a fat profit. We'd like to imagine that companies should always innovate as hard as possible, but it's not always the winning strategy.

olliej 6y ago
I think the point that they were trying to make is that sabotaging long term profits by maximizing short term profits is less profiterole over the long term. Which would make it incompetent for the company, but because of earlier cashing out, possibly not incompetent for the specific people making those decisions.
- lmm 6y ago
  We'd like to think that long term strategies are always better, but again that's not always true. Sometimes it's better to realise some profits now.
  - mekster 6y ago
    But Intel saw it coming when they're left out of the mobile market and ARM had been advancing rapidly for over a decade, not to mention x86 has been too old now.
    - lmm 6y ago
      That doesn't necessarily mean that there was a better path available to them. If Intel moved away from x86, a lot of their strategic advantages would disappear; they'd be one player among many, and they wouldn't have the vertical integration advantages of people actually making full ARM-based systems. Meanwhile there's plenty of money to be made from x86 for decades yet, from clients that put a high value on backward compatibility (which Apple don't, not in the same way - after all, they've done this twice already).
      - fauigerzigerk 6y ago
        >If Intel moved away from x86, a lot of their strategic advantages would disappear; they'd be one player among many They are in fact one player among many. Their strategic advantages have evaporated. The entire mobile space passed them by and now AMD is seriously threatening their x86 business. Something has clearly gone very wrong at Intel. Shareholders can't be happy about that.
        lmm 6y ago
        > The entire mobile space passed them by True, but only a small minority of companies that went into that space made money on it. Any Intel mobile division could very easily have been the next Blackberry or Nokia. Staying out of that fight may well have been the best decision for their shareholders. > AMD is seriously threatening their x86 business. If they lose the profitable server segment to AMD then that's a serious problem, I'd agree with that. That's far from settled though.
      - mekster 6y ago
        I'm in no position to say but how about just make a division to develop ARM based CPU and take some part of the pie while keeping the x86 cash flow coming?
        lmm 6y ago
        The conglomerate discount exists for a reason. People who want to invest in ARM know where to find it; it makes sense for Intel to stick to their strategic advantages.