3 ms·

Intel has $24.8 billion in cash. https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on-hand https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on

Intel has $24.8 billion in cash. https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on-hand https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on... Intel dropping their prices and thus revenue temporarily should not affect their ability to compete at all. They're not THAT badly mismanaged to the point they're out of cash.

joakleaf 5y ago
... and dropping prices doesn't necessarily meaning dropping revenue or even profit. Intel's per chip profit may drop, but if they sell more because of lower prices, they may actually increase their overall profit. It is really hard to tell without knowing Intel's current profit margin and the increase in number of chips sold from this maneuver (if any).
starfallg 5y ago
Intel drank the management consultant kool-aid like many large pharmaceuticals corps, relying more on financial engineering than their research pipeline to compete. The flip side is that they have lots of money to splash around. Companies like Pfizer for example.
- christophilus 5y ago
  Did they? I thought they made a heavy bet that hasn’t paid off (and maybe never will).
  - cisvolk1016 5y ago
    So if Intel drops $0.8B on a risktaker learning from what I. B. M. did to make Watson and not make those mistakes. What new thing could come from that? A new category product is what Intel should look for around the corner(s).
  - starfallg 5y ago
    You're right for the 10nm (7nm) process development. They focused on shrinking the wrong parts and ended up with an inferior product. Instead of changing direction, they doubled down.
    - galangalalgol 5y ago
      Was this a case of a leader refusing to be wrong, or engineers thinking "we almost have this, give us another shot."
      - GuuD 5y ago
        I have no idea, but isn’t it the usual real-world case of “it’s complicated, and it’s both”?
deleted 5y ago
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3 ms·

Intel has $24.8 billion in cash. https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on-hand https://www.macrotrends.net/stocks/charts/INTC/intel/cash-on

by jychang 5y ago

joakleaf 5y ago
... and dropping prices doesn't necessarily meaning dropping revenue or even profit. Intel's per chip profit may drop, but if they sell more because of lower prices, they may actually increase their overall profit. It is really hard to tell without knowing Intel's current profit margin and the increase in number of chips sold from this maneuver (if any).
starfallg 5y ago
Intel drank the management consultant kool-aid like many large pharmaceuticals corps, relying more on financial engineering than their research pipeline to compete. The flip side is that they have lots of money to splash around. Companies like Pfizer for example.
- christophilus 5y ago
  Did they? I thought they made a heavy bet that hasn’t paid off (and maybe never will).
  - cisvolk1016 5y ago
    So if Intel drops $0.8B on a risktaker learning from what I. B. M. did to make Watson and not make those mistakes. What new thing could come from that? A new category product is what Intel should look for around the corner(s).
  - starfallg 5y ago
    You're right for the 10nm (7nm) process development. They focused on shrinking the wrong parts and ended up with an inferior product. Instead of changing direction, they doubled down.
    - galangalalgol 5y ago
      Was this a case of a leader refusing to be wrong, or engineers thinking "we almost have this, give us another shot."
      - GuuD 5y ago
        I have no idea, but isn’t it the usual real-world case of “it’s complicated, and it’s both”?
deleted 5y ago
[deleted]