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The problem is fabs need massive scale. If Intel loses the scale it won’t have the ability to invest at a good cost base in new generations and risks falling be
by graeme 6y ago
The problem is fabs need massive scale. If Intel loses the scale it won’t have the ability to invest at a good cost base in new generations and risks falling behind.
Profits today, decline tomorrow. Blackberry revenues grew for several years after the iPhone, but they were doomed.
This is Intel’s challenge. Present profits are misleading. The CEO recognizes it and they have a good shot of turning things around though.
- totalZero 6y agoYou can't exactly compare a capital intensive manufacturing company to a smartphone company. The capital assets involved in what Intel does are so substantial that it would take time to unseat them in the best of circumstances, let alone right now when even semiconductor equipment companies are complaining that they can't get the chips they need for their machinery.