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May be Intel wants to produce phone and tablets under ts own brand. That is what every one of you want. Intel is preparing itself for that if the present efforts don't bear any fruits.
PCs: Barclays Cuts Estimates Through 2015; Tablets Promise Long Decline
Barclays Capital‘s hardware analyst Ben Reitzes today offers his views on the outlook for the personal computer, cutting his estimates for the market from this year through 2016, warning that “PCs could decline for many years to come.”
The PC industry is blind, he writes, to how the newer crop of mobile devices, especially tablet computers, that are eclipsing the role of the PC, and pushing out the replacement cycle for the category:
We believe a new generation of consumers and IT workers are figuring out how to compute differently than those that started using PC’s in the 90’s – relying more on mobile devices and the cloud – as PC’s see significant “task infringement” by the day. As a result, it can no longer be assumed that the PC market can remain in the range of 350 million units a year – and we argue that the PC replacement cycle is in the process of being elongated by 1-2 years, resulting in the loss of 50-100 million units in annualized demand by 2015. After years of denial, most PC industry players still don’t seem to realize what is happening – and don’t have contingency plans. PC’s are not the only subsector impacted in tech—as printing also is caught in the wake of mobility. Given these factors we are significantly cutting estimates for the PC industry to reflect further deterioration in PC related revenues.
Reitzes cut his 2012 forecast to 352.75 million PC units sold, down from 363.92 million, cut his 2013 model to 338.34 million, a 4% decline, down form 362.6 million previously, cut his 2014 model to 324.1 million from 360.1 million, and cut his 2015 model to 311.5 million from 351.4 million.
At the same time, Reitzes raised his estimate for tablet computers, both for Apple‘s (AAPL) models and for non-Apple models, projecting 182 million next year, versus a prior 146 million estimate, 230 million in 2014 versus his prior 139 million estimate, and 268 million in 2015, and 300 million in 2016.
Reitzes projects Apple retainig 61% of tablets next year, by unit share, up from 56% this year, 61% in 2014, 60% in 2015, and 59% in 2016.
Samsung Electronics (005930KS), Google (GOOG), and Amazon.com (AMZN) “have the ability to expand the non-Apple market quite a bit and we believe these 3 companies can sustain 30-40% share of the market (combined) over the longer term,” he writes.
Reitzes also took a moment to cut estimates for Hewlett-Packard (HPQ) and Dell (DELL).
For HP, “we are cautious on HP’s PC segment given secular pressures, share losses, market confusion over ultrabooks and Windows 8, and a slowdown in markets like China,” he writes.
Reitzes cut his 2012 fiscal year estimate, for the 12 months ended in October, to $120.7 billion in revenue and $4.01 per share in profit, down from $121 billion and $4.03. He warns a weakness in PC sales could also impact the company’s printer business. For 2013, he projects $113 billion and $3.25 per share, down from $115 billion and $3.35 previously.
For Dell, Reitzes cut his fiscal 2013 estimate to $57.1 billion, as before, but projects EPS of $1.71, down from $1.75.
Dell’s PC business won’t be saved by Microsoft’s (MSFT) Windows 8, he believes:
It seems from our checks that tablets are having an impact on both corporate and consumer PC sales. We see tablets encroaching on PC sales in education and financial services verticals in particular of late. Also, we believe Dell saw a q/q uptick in federal government spending, but still down y/y – and not enough of a pick up to back upside to current quarter guidance for overall Dell revenues to be down 2-5% q/q vs. normal seasonality of flat-to-down 1% (5 year average). With respect to Win 8 tablets, we do not believe that Dell will see meaningful traction.
If true, things are getting worse in the industry Intel serves.
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PCs: Notebooks, Ultrabook Builds Declining, Says Longbow
By Tiernan Ray
Longbow Research‘s chip analyst Joanne Feeney today reports that her “contacts” say production of notebook computers this quarter is coming in “worse than expected,” perhaps falling 5% to 10% from Q3's level, confirming previous inquiries, and she notes, too, that her sources claim “recent [Microsoft (MSFT)] Win8 notebook order cancellations from OEMs as they revise downward views of holiday demand.”
“Consumers continue to spend on lower-priced systems and appear reluctant to move to higher-end systems,” she writes. “OEMs are moving to prevent an inventory buildup at year end.”
Feeney notes, too, that notebook inventories have climbed one to two weeks, to six weeks, and that “Ultrabook sell-in continues to be weaker than expected and builds are likely to come in below 10% of total notebooks,” referring to the slim and light notebook computers Intel (INTC) has been promoting among OEM partners.
There appears to have been “aggressive” discounting of Intel’s “Core i3” and “Core i5” chips, writes Feeney, and Advanced Micro Devices (AMD) is also reportedly cutting prices.
As far as system makers, Feeney thinks Lenovo (0992HK) is fairing better than Hewlett-Packard (HPQ), Dell (DELL) and Acer (2353TW), while Apple’s (AAPL) “sell-in is expected to climb sequentially on new model launches.”
Feeney maintains Neutral ratings on Intel, AMD, Intersil (ISIL), Nvidia (NVDA), and Volterra Semiconductor (VLTR).
What can you get for $25.00? You must be comparing apple and oranges. Intel box comes with ULV i3 processor along with whole box. It is a computer box. You need to add a few things to make it work. Then it becomes a custom build computer like you had built it for your self some time back.
I am not aware of spec of the other unit(pi). You pay for Intel name and reliability.
Different point of views are acceptable. But you can't in the same sentence offer biased information.
I do own Intel stocks and I do write cover calls and write puts to make money on Intc in addition to collecting dividends.
IBC,
On one hand you are putting down laptop with Intel processor and on the other hand you are hyping ARM based laptop. There is already a echo system in place based on x-86 and windows.
It is quite clear that any one who posts a product based on Intel processor and win8, you hate it.
The same thought came to my mind but differently. I was thinking if Samsung windows tablet is that great, how come it is not being advertised and touted as such. This thing should be all over the wires. Intel does provide marketing $ to its partners including Samsung.
Then I realized it is not that simple. Intel does not have its own stores to sell these. It does not have channels to move the products like others ODMs do. It also does not know which models will sell best-stand alone, convertible, or any other. The same is true of the ODMs at the moment too. That is why there is a caution. It could be hurting Intel in short run but eventually it will succeed.
I am also concerned that all ODMs are selling ARM based tablets as well. I am not sure their mind is set on windows based tablets yet.
Two variables-Intel processor and windows 8 both brand new are not helping.
This is what we have been talking about.
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INTC: ARM-Based Mac Likely, But Takes Years, Say Analysts
By Tiernan Ray
Shares of Intel (INTC) are off 15 cents at $21.69 as the Street ruminates on speculation yesterday by Bloomberg that the company might lose Apple (AAPL) as a customer for personal computer processors.
Shaw Wu with Sterne Agee, who follows Apple and has a Buy rating on the stock and an $840 price target, “frankly not surprised as this has been talked about since iPad shipped in 2010 and Mac OS X Lion in 2011 that borrowed heavily from iOS.”
However, Wu thinks that such a move, if it were to happen is “not likely for a few years as Mac code is optimized for INTC.”
It’s “inevitable” Wu thinks, but there are different trade-offs if Apple were to switch, which he goes through:
It will likely take some time to optimize OS X and hence Mac for ARM. In addition, INTC processors are much more powerful for running compute-intensive Mac applications and for development […] One key argument to merge is to simplify the architecture but to also take advantage of the large code base that has been developed on iOS by AAPL itself as well as through third-party vendors via the App Store. In addition, merging could also allow AAPL to deliver a more seamless and integrated experience across its platforms […] We believe this is a challenge to INTC to deliver stronger battery life. Today when using an 11-inch MacBook Air, the smallest form factor mobile Mac, we notice that it lasts about 4-5 hours under heavy use which is only half of 9-10 hours for an iPad.
Piper Jaffray’s Gus Richard, who rates Intel shares Neutral, with a $19 price target, and who rates ARM shares Overweight with a $33 price target, was more emphatic today.
Richard argues that Apple is a “pioneer” in things and that at the same time it might be following Microsoft‘s (MSFT) lead, an allusion to the “Windows RT” version of Windows that is shipping on its Surface tablet computer and that will ship on other non-Intel-based PCs from various hardware makers. The Surface uses Nvidia‘s (NVDA) “Tegra” processor, which is based on the ARM technology.
This is consistent with our checks over the last couple of years that Apple is working on it own ARM-based processor for its PC line. We believe that one of the consequences of the post-PC and SoC eras is a shift back toward internally developed silicon away from merchant silicon. We believe that Apple is a pioneer in this movement and would not be surprised if Apple, like MSFT, moves to an ARM-based PC product […] In addition, we believe that Apple is one of the companies licensing ARM’s next generation processors that support 64-bit, the Cortex-A53 and -A57. The A50s are expected to be used in servers and an Apple-based design would likely provide enough horsepower for Apple power users. If Apple moves forward with an internal ARM-based PC product, we would not expect the product to show up before CY14 and more likely CY15.
I would note that there has been speculation in past that Intel might gain Apple as a customer for either chip design, or foundry services, for the processors in the iPhone and iPad, though that possibility has not been mentioned today. As I mentioned this morning, an article in DigiTimes this morning speculated that Samsung is ramping down some manufacturing builds because it is losing business from Apple. There are other foundries Apple could go to, including Taiwan Semiconductor Manufacturing (TSM), and GlobalFoundries.
Apple is using these rumors and stories to extract better prices from Intel. This is one strategy to lower your product cost and increase your margin. Tim is purely a cost reduction guy. I have heard that he is worried about capacitors cost which is fraction of a penny.
That is exactly what it is. iphone is biggest contributor to the top and bottom line. For them iphone/ipad is computer.
WBMW,
I know you are quite bullish on Intel. I have believed in Intel for so long but for the first time I feel that momentum is on Intel side. The whole world is against Intel. No one likes Intel process technology lead. I have read your comments on phone and tablets market. There is some hope but again momentum is not on Intel side. To get traction in these markets, Intel will have to execute flawlessly and be lucky.
as far as apple leaving Intel, it is going to happen sooner or later. Apple just announced various products based on Intel CPU/GPU and as such it will be a while before apple switches out of Intel.
It is going to hurt Intel image and bottom/top line. That is not good for Intel stock.
This particular analyst thinks that AMD stock is worth $14.00. It is around $2.00 at the moment. Amazing how these guys can get away with any kind rubbish.
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5:55 PM
AMD’s ARM Server Push Hopeful, But a Ways Away
By Tiernan Ray
The Street is still picking apart the presentation given Monday by Advanced Micro Devices (AMD), in which the chip maker’s CEO, Rory Read, said AMD will introduce chips based on ARM Holdings (ARMH) processor designs starting in 2014, in order to jump-start the market for “micro servers” that run in “cloud computing” data centers, in constrast to servers traditionally run on Intel’s (INTC) “x86” processors.
ARM itself followed yesterday with the announcement of a new 64-bit CPU core, the “Cortex-A50,” destined to go into server chips of the kind AMD is designing.
AMD is competing against startups such as Calxeda and other public chip makers such as Applied Micro Circuits (AMCC).
The shares today fell 2 cents, or 1%, to close at $2.05 on the first day of trading after
Williams Financial Group‘s Cody Acree , who has a Buy rating on the stock, and a $14 price target, wrote this morning before market open that the news was a bit of a surprise coming at this time from AMD:
Given the comments made by Rory Read over the past several months, those that were paying attention likely saw this coming. The problem has been that AMD hasn’t recently given investors much reason to pay attention. We believe this announcement is critical enough that it warrants investors take another look at AMD and we expect the company’s shares to react positively once the market finally begins trading.
Acree thinks there’s a chance for the company to escape the misfortune of the PC market for server and tablet chips:
While these new server processors are not expected to be in the market until 2014, we believe the directional change at least opens the door on a path for AMD to return to growth. The company’s core PC/Notebook market is likely entering a very long period of secular decline, caused primarily by the adoption of tablets and smartphones [...] On the other hand, we see significant opportunities in microservers and tablets for AMD. In servers, the company’s historic relationships, architecture experience, and graphics strength should give the company a material advantage [...] In tablets, we expect the company will eventually also offer ARM-based alternatives to its current tablet platform. While tablets could be a material driver, we are less enthusiastic because of the customer concentration issues and the significant level of entrenched competition. With servers, all the players will be starting from about the same point.
Bears on the stock, while less jubilant, suggest the effort has merit:
This may be starting of some cracks in apple armor.
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AAPL: iOS Chief Forstall Steps Down, Retail Chief Browett Leaving
By Tiernan Ray
Apple (AAPL) this evening announced a major shake-up of its executive ranks, with its head of iOS software, Scott Forstall, leaving the company next year, with his duties being taken over in part by hardware guru Jony Ive, who will lead human interface design, in addition to heading up industrial design.
Forstall will stay on as an advisor to CEO Tim Cook in the meantime.
Apple’s head of iTunes, Eddy Cue, will take over the “Siri” intelligent assistant and “Maps” initiatives.
The company’s head of OS X, Craig Federighi, will combine his responsibility with heading up overall iOS development.
And Bob Mansfield, formerly head of engineering, who was slated to retire but then reversed course in August, will run a new group called “Technologies,” which Apple described as “which combines all of Apple’s wireless teams across the company in one organization, fostering innovation in this area at an even higher level. This organization will also include the semiconductor teams, who have ambitious plans for the future.”
ANd Apple’s retail chief, John Browett, hired just back in January, will leave, and Apple’s retail team will for the moment report directly to CEO Cook while the company searches for a replacement.
Apple’s announcement comes as competitor Google (GOOG) today announced new products based on its competing Android software and Microsoft (MSFT) formally unveiled its Windows Phone 8 software following retail availability of the Surface tablet computer last week and Windows 8 for desktops and notebooks.
Will this mean the end of the “skeuomorophism” in iOS? The merging of iOS and OS X?
This may be starting of some cracks in apple armor.
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AAPL: iOS Chief Forstall Steps Down, Retail Chief Browett Leaving
By Tiernan Ray
Apple (AAPL) this evening announced a major shake-up of its executive ranks, with its head of iOS software, Scott Forstall, leaving the company next year, with his duties being taken over in part by hardware guru Jony Ive, who will lead human interface design, in addition to heading up industrial design.
Forstall will stay on as an advisor to CEO Tim Cook in the meantime.
Apple’s head of iTunes, Eddy Cue, will take over the “Siri” intelligent assistant and “Maps” initiatives.
The company’s head of OS X, Craig Federighi, will combine his responsibility with heading up overall iOS development.
And Bob Mansfield, formerly head of engineering, who was slated to retire but then reversed course in August, will run a new group called “Technologies,” which Apple described as “which combines all of Apple’s wireless teams across the company in one organization, fostering innovation in this area at an even higher level. This organization will also include the semiconductor teams, who have ambitious plans for the future.”
ANd Apple’s retail chief, John Browett, hired just back in January, will leave, and Apple’s retail team will for the moment report directly to CEO Cook while the company searches for a replacement.
Apple’s announcement comes as competitor Google (GOOG) today announced new products based on its competing Android software and Microsoft (MSFT) formally unveiled its Windows Phone 8 software following retail availability of the Surface tablet computer last week and Windows 8 for desktops and notebooks.
Will this mean the end of the “skeuomorophism” in iOS? The merging of iOS and OS X?
I never ever seen these kind of comments about AMD. Even when it was performing worse this this, analysts were ready to support it but now every one has given up. It will be difficult for AMD to survive as a stand alone business.
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2:34 PM
AMD Falls 16%: FBR, Bernstein Cut to Hold; ‘Uninvestable’?
By Tiernan Ray
Shares of Advanced Micro Devices (AMD) are down 43 cents, or 16%, at $2.20 after the company last night reported Q3 revenue and earnings per share that missed analysts’ estimates and said it would commence a restructuring involving a 15% cut in staff to save $190 million next year in operating costs.
On a conference call with analysts after the report, CEO Rory Read told the assembled that because of macroeconomic weakness, and a cautious attitude by PC makers in advance of the introduction of Microsoft‘s (MSFT) Windows 8 a week from today, “We face a very challenging selling environment, especially in the lower end of the consumer client space.”
Not only must AMD “build a more efficient operating model,” he said, but “we must diversify behind the traditional PC market and become a leader in fast-growing and adjacent markets where we can differentiate and create leadership.”
Those areas, said Read, include “cloud computing” infrastructure, video game machines, embedded chip applications, and tablets and a “new breed of entry-level notebooks” that can benefit from AMD’s energy-efficient processors.
The Street today is not exactly heartened by those words. The stock today received two downgrades, that I can see, with Bernstein Research‘s Stacy Rasgon cutting the shares from Outperform to Market Perform, and FBR Capital‘s Craig Berger doing the same.
The language is fairly blunt from both analysts. Rasgaon writes that “Our last tiny bit of conviction is, at long last, depleted,” while Berger is “throwing in the towel.”
Writes Rasgon, “We have no further confidence that any aspect of our prior structural thesis (margin accretion, cash flow, and balance sheet deleveraging) will play out in the foreseeable future.”
“Indeed, we now see the prospect for structurally lower margins, as well as cash burn [...] Frankly, the most common adjective that comes up when we discuss the company with clients is, simply, ‘un-investable.’ We are now believers.”
Rasgon cut his 2013 estimates to $4.87 billion in revenue and a 41-cent loss per share from a prior estimate for $5.54 billion and a profit of 14 cents.
Berger writes that management has mis-executed, raising the company’s potential burn rate, and the laying off of engineers doesn’t help:
We now have less confidence in go-forward cash burn given rapidly declining ASPs and management’s new refusal to provide gross margin guidance. Thus, we worry about the magnitude of intended pricing cuts and gross margin impacts as AMD’s cash bleed could intensify. Further, while we previously assessed cash to be sufficient for the next year, we now see scenarios where AMD may raise cash sooner, particularly with pending GlobalFoundries payments and with 4Q12 sales down a whopping 33% YOY. Further, management’s ongoing misexecution in our opinion seems to be contributing too (building too much inventory, firing top operational managers, channel misalignment, withdrawing from broad swaths of the market). Finally, the firm announced 15% head-count reductions, which will make it more
difficult to engineer and sell competitive products.
Q and A from conf. call. No mention of phones any where-a disappointment.
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Intel to Slow Down in Q4 Until Demand for Chips Picks Up
OCTOBER 16, 2012 AT 2:00 PM PT
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Given the bleak picture that it painted last month, Intel’s reports certainly could have been worse, but that doesn’t mean they were good.
Earnings per share were 60 cents on sales of $13.5 billion, both of which were better than what analysts had expected: 50 cents on sales of $13.2 billion. But that’s after Intel disclosed that sales were looking a lot slower than it and analysts had expected.
Expect Intel to give its clearest view yet on what it sees ahead for the markets it controls — chips for PCs and servers — and to attack the markets where its inroads as yet are minimal: Smartphones and tablets. Also expect some color on whether or not Microsoft’s Windows 8 will be much of a catalyst for PCs. As yet, the expectations are pretty low.
Update: The call is now over. Much of the discussion focused on Intel’s decision to slow down product at its many factories, or fabs, for the time being until demand for PCs and the chips inside them picks up.
It’s not a small thing. Chip fabs are expensive to build and expensive to operate, so generally speaking you want them to be running as close to full capacity as possible. But when demand is so slack that your inventory of chips begins to pile up, you have to choose when to slow down and wait for demand to pick back up again.
Also, Intel is using the slowdown as an opportunity to get under way with the transition to 14-nanometer manufacturing technology. This is one of those moments where Moore’s Law is made real, when the elements on a chip get smaller, the chips get smaller, so more of them can be made for every silicon wafer, and they consume less power. Or you can cram more transistors into the same space, and thus get more computing work done for the same cost as before.
That is sort of Intel’s ace in the hole during periods when demand drops off. Eventually it picks up if only because the PC makers need to refresh their products with the latest stuff, especially after a process shrink. It virtually guarantees that demand will pick up again eventually.
Earlier:
2:05 pm: CEO Paul Otellini is speaking. He says to expect PC sales to grow at half the rate seen historically.
Now he’s talking about Ultrabooks and says many will be $699 or less. Also 20 tablets running Clovertail, the latest version of the Atom processor.
Otellini: Talking about Haswell, the next generation of processor. He says previously it had been expected to come in at a power envelope of 15 watts. Some advances have allowed Intel to expect it to run at 10 watts. That’s good news because the lower the wattage, the better the shot Intel has at getting into handsets and tablets.
2:08 pm: Now CFO Stacy Smith is speaking.
Smith: As a result of weaker than expected demand environment, factory loadings have been cut. Factory utilization rates have been taken down. This will reduce operating costs by $500 million. Also capital spending has been cut to $11.3 billion in Q4.
Smith: Gross margin in Q4 57 percent, which is lower than typical for Intel. Ouch. A lot of that is from the cut in capex and utilization.
Smith: We are taking aggressive actions to reduce inventories.
Smith: We continue to expect a benefit from the build out of the cloud.
And now begins the Q&A:
2:13 pm: Question from RBC Capital: Stacy, you gave a number at the analyst day for FY 13 gross margin?
Smith: We’ll provide it in Janurary. Premature to provide that. We need to fight through Q4 first. There’s a few things for 2013. We’re starting up 14 nanometer so that’s worth a few points of gross margin. No excess capacity charges after Q2 in 2013. Beyond that I’ll wait until January.
2:16 pm: Question for Otellini: Assess the PC market? Is it all macroeconomy or Windows 8 pent-up demand?
Otellini: It’s both. China has turned weaker on us. However we do believer that PC consumption did grow at about half the normal seasonal rate. How much that is is TBD, we’ll know a lot more 90 days from now after the Windows 8 launch. We’ll try to quantify that for you in 90 days, but right now it’s a bit of each.
Question for Smith: Is this cut in capex going to save you what you saved in 2009?
Smith: You can see capex in 2012 is down $1.2 billion from what we thought before. We’ll talk about 2013 in January.
Question: Are you seeing any Ivy Bridge tablet designs? Any Haswell tablets?
Otellini: A handful, five to eight on Ivy Bridge. Haswell, it’s too soon to tell.
Otellini: Those tablets tend to skew toward the enterprise. That is where you will see the Ivy Bridge ones migrate. Clover Trail will be more consumer focused.
2:21 pm: Question from Chris Danely of J.P. Morgan: What will it take to pull the PC industry out of this funk? Is this a permanent state?
Otellini: Since we don’t know how much is flatness because of which condition, it’s hard not to know if we’ll return to normal growth in a good economy. That tablet is not the end state of computing. What I can’t predict is which form factor is going to win. These things that have the best of both worlds are likely to be the things that are the most high volume runners.
2:24 pm: Smith speaking about inventory: We’re too high today. That’s why we’re bringing the utilization down. (What this means is that Intel’s factories won’t be running at full tilt pace, and some production lines will be running slower or idled for the time being until demand comes back. It’s kind of a big deal for Intel to do this because letting a factory sit idle is sort of an expensive proposition.)
Wow. Smith just said that utilization rate has been taken down to below 50 percent. Part of that will make room for the new technology, 14 nanometers. But some of it will be idle. Again, ouch.
Question about utilization again: Are you mothballing one building?
Smith: We’re trying to match our capacity that is in place. We were putting in capacity for the second half that is bigger than we got. Our planning model is we’re always looking to have the ability to respond to upsides. We call that “white space.” The risk of being caught short is greater than being caught long. If you’re short it can take two years to get caught back up. If you get caught long, it’s six months.
2:29 pm: Question about inventory again. Does pricing come into play on the PC side? Is that helping? Is there anything else that Intel can be doing to spur demand? Microsoft is taking things into its own hands.
Otellini: The short answer is no on pricing. We think it was priced aggressively. In the PC group, Average Selling Prices were flat. That was us going after some incremental market share at the bottom of the market. That is more the driver.
In terms of demand stimulation: A lot of what we’re doing right now is consistent with where the market was. We’re up to 40 machines that are touch enabled. We’re working with the glass manufacturers to bring the cost of the touch enabled glass down.
Question about competitor AMD. Are you seeing lower pricing from AMD and is that affecting you?
Smith: Ask them. Last quarter and this quarter we believe we have won some share at the lower end of the market.
Question from Goldman Sachs: About profit margins. Is there anything you see to make the profit margin decline worse than you usually see during a demand downturn?
Smith: Historically, the time it took to get things realigned has taken longer than two quarters. Compare now to 2009, when we were in the mid to high 40s on gross margins, now we’re in the high 50s. It’s faster and our margins are higher than in 2009.
Question about ARM-based server players. Are you seeing any competition from ARM chips in servers?
Otellini: They need to add features to be considered like 64 bits. You can look at some of the workloads like Hadoop. They can be handled by micro-servers, and those can be served by Atom.
2:35 pm: Question about mix of demand geographically. Give us more color on demand for PCs from consumers and businesses.
Otellini: The inventory thing is straight. Our OEMs are running very lean. Any kind of demand blip could cause us to reduce even more. In terms of mix, U.S. and Western Europe are soft for consumers. The enterprise PC has gone flat, and that’s a reflection of large corporations making hard decisions.
Otellini: We’ll see how that sorts out over the next quarter. In China, the slowdown there was in consumer notebooks.
Smith: We saw PC units up 1 percent in the quarter. PC ASPs (average selling price per chip) were down 1 percent and server ASPs were down 7 percent.
Question about China: Question about demand from data center customers.
Otellini: Data center ASPs were down a bit year on year. The mix is quite good. Two-way machines versus four-way machines. One of the fastest growing segments is high performance computing (supercomputers). I see the current mix being an anomaly as the result of the soft market for corporate data centers.
2:41 pm: As you think about manufacturing capacity for 2013, what kind of PC environment are you expecting?
Smith: I’m going to hold off on a unit growth or capital forecast. Capital forecast will depend a lot on Q4.
Final question: Inventories are lean and you expect less than half of normal growth. Why are customers choosing to take inventories down further?
Smith: It’s caution. Our customers are being cautious.
And that’s it. A nice short conference call.
Here is some points from conf. call.
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5:23 PM
INTC Conf Call: Otellini ‘Very Excited’ About Windows 8
By Tiernan Ray
Following Q3 results from Intel (INTC) this afternoon that surpassed estimates, and a Q4 outlook that missed consensus, CEO Paul Otellini and CFO Stacy Smith held a conference call with analysts to review the results and outlook.
Otellini said PC sales this quarter will “grow at about half of what we would expect from normal seasonality,” just as was the case last quarter, in his view.
He said Intel’s projected $3.6 billion in revenue, give or take $500 million, is actually less than would be implied by even that reduced seasonality, given that some customers are not building as much inventory because they are cautious about overall “market uncertainty” and the impending introduction of Microsoft‘s (MSFT) Windows 8, which becomes available at retail on October 26th.
There will be an “incremental decrease” in inventory among customers toward the end of the year.
Sales of chips for corporate servers were “softening” during the quarter, said Otellini. Data center revenue was softer overall as Intel saw a greater mix of growth in chips for “cloud” computing versus traditional enterprise computing, leading to a “mix” that brought down the average selling price for the business as a whole.
However, when Otellini was asked whether mix would continue to bring down ASPs for the data center over the longer term, Otellini indicated that was not the case, that in fact last quarter was “a bit of an anomaly.” Otellini noted in particular that Intel was seeing some of its fastest data center growth in high-performance computing, where it sells processors at or near the highest of its prices.
Intel shares are currently down 80 cents, or 3.7%, at $21.55, having continued to go lower in late trading.
Otellini talked up the bright prospects for numerous ultrabook and tablet computers running the company’s “Core” series processors and its “Atom” chips:
There will be more than 140 core-based ultrabooks, more than 40 of which will have touch. This will include more than a dozen convertibles that combine the productivity of the laptop with the convenience of a tablet. Many of the ultra book skews will hit the mainstream 699 price point with some burst skews well below even that number. Q4 will see more than 20 Atom based tablets from six or more leading OEMs using Clover Trail. Clover Trail is a brand new SOC that will enable tablets as thin as 8.5-millimeters and as lit as 1.5 pounds with three weeks of connected standby battery life and all of the compatability that Windows users and Intel customers have come to expect I’m excited about these products and the capabilities they bring to consumers and the enterprise.
When Otellini was asked why demand didn’t seem to be building in advance of Windows 8, he remarked that although “it’s not happening yet,” nevertheless he is “very excited about this operating system,” particularly its use of touch-based gestures:
Tablets have changed the paradigm for people to use computers. They like touch. They like to make their photos get larger with their fingers and everything else that’s good about that so I think we haven’t had a chance to judge how the consumers will embrace this in mainstream PC space or not. I’m very optimistic … we now run tests on Windows 8 touch-enabled ultra books in a number of the major cities and around the world, across multiple demographics, the feedback is universally positive, so I think we’re just too soon to tell.
Otellini was asked about how many tablets might use the Core processors, as opposed to Clover Trail, in addition to the Microsoft Surface tablet. Otellini said “five to eight” may use Core, as a rough estimate. Otellini said it was too soon to say how many devices would use the company’s next-generation processor, “Haswell,” but added,
When you start seeing an ultra book with a detachable touch screen, is it a tablet? And it’s based on Haswell, is it a tablet, an ultra book or a convertible? I don’t know. We’ll have to invent some names for these things as we go along but what I can tell you is the level of innovation there is unbounded.
Haswell devices will show up in the first half of 2013, he said, when pressed on whether it would be the March quarter or not.
Pressed by one analyst on how much of the slowdown in consumer PCs was related to timing of Windows 8, versus how much was related to cannibalization by tablets and phones, Otellini said that “I think it’s a bit of each.” Otellini said that once Windows 8 ships, and consumers begin to try it out, “and we have all of the touch-based ultrabooks out there, we’ll know a lot more so we’ll try to quantify that a bit more for you in 90 days.”
Regarding Intel’s having cut its 2012 capital spending view “pretty significantly,” as Smith put it, the company is not yet projecting its 2013 spending, he said. “Right now we want to fight through a Q4 where we don’t have a lot of visibility before we lock in on a 2013 number,” said Smith. Smith also declined to project 2013 gross margin, other than to say that “startup costs” to commence production of Intel’s chips at 14 nanometers will initially reduce gross margin “two to three points.”
Another point. It is not you and I think or folks on this board think.
What analysts want is presence in tablets/phones in US and nothing less. And that is not there yet. Till that time stock could linger.
Absolutely. It will force hands of other players in semi and appliances businesses. It is very smart decision. Intel must know that 14nm is already working to make this decision. Very positive in my thinking.
Yes, Stacy clearly mentioned about 14nm acceleration to Q1/Q2 2013.
Yes. It shows Intel confidence in its technology leadership. It is one quarter issue and as such it may not effect that much in my opinion.
If it does go down because of that, it will be an opportunity to buy. I will do so for sure.
I just listened to Stacy Smith of Intel. GM down is due to deliberate decision on part of Intel to close old factories and convert to 14nm. To me that is positive and not negative.
That is very smart on part of Intel.
Why should Intel do this deal? No one helps its own enemy. Intel had stated in the past that it will not manufacture its competitors chips which meant ARM.
The only reason it would do such a deal is to utilize its factories to bring up GM.
It may be an old article being recycled.
--------------------------------------------------
* Intel reports quarterly results on Tuesday
* Revenue growth under pressure from tablets, weak economy
* One bright spot: highly profitable server chip business
By Noel Randewich
SAN FRANCISCO, Oct 14 (Reuters) - As tablets and smartphones draw more and more users away from PCs, Intel Corp is facing some difficult questions.
Intel, the world's leading chipmaker, is used to being king of the personal computer market, particularly through its historic "Wintel" alliance with Microsoft Corp , which led to breathtakingly high profit margins and an 80 percent market share.
But in the fast-growing and cut-throat mobile world, Intel is struggling - its market share is less than 1 percent of smartphones, trailing Qualcomm Inc , Samsung Electronics
Co Ltd , ARM Holdings Plc and others.
That leaves some investors, already concerned about a lackluster global economy, asking if Intel's invincibility has come to an end, and whether its profit and revenue growth potential may become much more ordinary.
When the company reports third-quarter results on Tuesday, one key figure to watch is gross margin, which analysts forecast at 62 percent. While that is still the envy of smaller chipmakers, it has been declining from a record 67.5 percent in late 2010, a trend analysts expect to continue.
"If we're moving to mobile, which is a low-margin business, it's difficult to see where the high-margin business is going to be for Intel," said Michael Yoshikami, chief executive of Destination Wealth Management. "That's why we own Qualcomm and we don't own Intel."
Shares of Intel have fallen about 7 percent over the past year. Qualcomm, a leader in providing "logic chips" or processors for tablets, has gained 12 percent.
It is not all gloom for Intel. Its highly profitable server chip business, now almost a quarter of revenue, is growing quickly as Internet companies like Google Inc and Amazon.com Inc build more "cloud" data centers to offer services to consumers using mobile gadgets.
Shipments of cloud servers are expected to grow at an average annual rate of 31 percent through 2015, much faster than overall server shipments, according to IHS iSuppli.
Pointing to an indirect benefit of mobile computing, Intel estimates that for every 600 new smartphones or 120 new tablets bought by consumers, an additional server is needed.
Still, the 44-year-old founding member of the Silicon Valley technology industry is struggling to find its place in a world moving quickly to mobile gadgets and social networks.
Analysts say emerging markets and business customers will fuel Intel's growth for the next several years but not at the explosive rates it has often enjoyed in the past.
Intel's revenue is forecast to be roughly flat this year with 2011 and to grow 4 percent next year, according to Wall Street estimates compiled by Thomson Reuters I/B/E/S. That compares with 24 percent annual growth in the past two years.
END OF AN ERA
Many technology pundits have declared the end of the PC era since Apple Inc's iPad hit the scene in 2010 and kick-started the market for touchscreen tablets.
Intel was slow to recognize how big a threat tablets would become, with executives describing them as complementary to PCs - a view shared by many others.
Increasingly, people are changing their tune. Global PC shipments are expected by analysts to decline slightly this year, the first annual drop since 2001.
To inject new life into PCs, Intel has been promoting a new category of thin, "Ultrabook" laptops with touch screens enabled by Microsoft Windows. But the Ultrabooks launched so far have been criticized as too expensive, and manufacturers have shipped fewer than expected. Intel declined to comment.
That shortfall was underscored when Intel warned in September of weak demand and cut its own forecast for third-quarter revenue by more than even the most pessimistic analysts expected.
The release of Intel's new Ivy Bridge processor this year was meant to speed up sales of Ultrabooks. But with premium-features like solid-state drives and touch displays, many models went for $1,000 or more - well above the $600-$700 price tag that analysts say is needed to gain traction with consumers.
Pointing to those high prices, IHS iSuppli recently slashed its forecast for 2012 shipments of Ultrabooks from 22 million units to 10.3 million units, with half of those expected in the next three months, coinciding with the launch of Windows 8.
"The only way it's going to work is if the PC world can achieve better economies of scale and get those prices down," said Longbow Research analyst Joanne Feeney.
Determined to protect its profit margins, Intel in the past has suggested it will not reduce chip prices to make Ultrabooks more affordable. Intel's dominance has long allowed it to charge aggressive prices for its processors - unlike many competitors, Intel both designs and manufacturers its own chips.
But even with that advantage, along with technological improvements and growing economies of scale, Intel may be hard pressed to preserve margins as it moves further into mobile, where processors sell for much less, analysts said.
Gross margins on smartphone processors typically work out to 50 percent, according to D.A. Davidson & Co analyst Aalok Shah.
"We believe the post-PC era has arrived," Piper Jaffray analyst Gus Richard wrote in a recent note to investors. "Moreover, $120 Intel CPUs are being replaced by $25 ARM-based CPUs as PCs are being cannibalized by tablets."
PC GROWTH
To be sure, many analysts say PC sales will pick up once the economy improves. Market research firm IDC said PC shipments fell 8.6 percent in the third quarter, but it expects annual growth in a range of 6.5 percent to 7.5 percent through 2016.
Microsoft also plans to launch a tablet/laptop hybrid using Intel's processors, aimed at corporate customers looking for a device compatible with business software that does not currently run on the iPad or Android tablets.
If nothing else, Intel's depressed share price has made investors like Capital Advisors fund manager Channing Smith take a closer look.
"Obviously the stock is extremely cheap and it has a very attractive dividend yield, but there's a good reason the stock is where it is, and that's mainly because strategically they've really missed out on mobile," Smith said.
(Reporting by Noel Randewich, Tiffany Wu)
((noel.randewich@thomsonreuters.com)(415 677 2542)(Twitter handle: @randewich)(Reuters Messaging: noel.randewich.thomsonreuters.com@reuters.net))
Keywords: INTEL GLORYDAYS/
For Reuters Top News page click the following link:
http://activetrader.schwab.com/ReutersNewsRedirect.aspx?vAnUSHeRl3nny5haw=781hmnBHYajoIt8wxH120PgtYuUecBLHG0818
Acer Tablet is better speced that Asus Win RT tablet as far as storage is concerned but it has the same price point.
Yes, it does not make sense but bad news from market keeps coming regardless. Apple may-I repeat may try this to use its brand and try to gain GM advantage but once this idea gets rejected by market place, only then apple will realize its mistake.
Another article and another day of apple leaving Intel.
---------------------------
SAN FRANCISCO (MarketWatch) ? There was an where it was suggested that Apple Inc., always looking for margin improvement, might eventually drop Intel Corp. as the processor provider of choice for its MacBook and Macintosh product lines.
Would it ever?
Apple AAPL?has managed to take licensed technology from ARM Holdings PLC ARMH?and build specialized chips for its iPhone and iPad, with some hints that it might someday do the same with its computers.
Historically, Apple had made a habit of changing processors. It began life using the 6502 technology from MOS technology in its Apple II/III. Then with the Mac, it jumped to the Motorola 68000. The company eventually abandoned the 68000 in favor of the PowerPC chip from its alliance with International Business Machines Corp. IBM?and Motorola, and then dumped that for Intel?s INTC?x86 chips.
Each time it did this, Apple created a huge problem for backward compatibility, something customers accepted. If a change was made once more, it would not surprise me or the users.
As Apple evolved, it finally fell into the line of thinking that drove it to essentially develop proprietary chips for the iPhone and iPad. The advantage is simple: You have a breakthrough device with certain specific features that you want to optimize. A general-purpose chip cannot do as good a job.
There are advantages to this approach. First of all is the product works better, in theory.
There are plenty of iPhone fanatics that claim the scrolling is so much better than any Android phone. Google Inc. GOOG?must agree, since it developed the ?Butter? code to deal with the smoothness. But it had to be done in software, and took time.
Apple licenses the basic processor technology from ARM and puts a team of dedicated processor designers to work creating specialized circuits specific to making the phone or tablet more functional at the chip level, not the software level.
Advanced Micro Devices Inc. AMD, which has turned itself into a ?fabless? chip maker over the years, has been toying with licensing its core technology in a similar way as ARM Holdings, but has received little attention so far. Investors do need to follow this development.
Anyway, Intel remains the No. 1 provider of off-the-shelf commodity chips, but the Apple way of developing product-specific chips around an ARM license is a real threat. I would think that Apple is already working on an replacement for the Intel parts in some future generation of laptop, for starters.
You have to note that the ARM core is not nearly as powerful as most of the Intel line of chips. But when optimized for a specific machine, it can easily seem as powerful. Since the ARM architecture is also optimized for low-power consumption, the end result is compelling.
According to reports, Intel adds $5 billion to its coffers in sales from Apple. If Apple used a specialty ARM chip in the future, replacing Intel, you can assume Apple would save $1 billion to $3 billion depending on the bookkeeping. More important, the Apple products would work better, or one would hope.
Of course, this changes the code base and makes it harder to clone the look and feel and makes it impossible to use the software anywhere else. In other words, it makes Apple even more of a walled garden.
Such a scenario sounds like a distinct possibility.
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I do get your point. The reason for my post was that Win8 release round the corner. Apple and ARM will have enough of competition and only time will tell what happens to tablet market.
AMD getting into tablets market
--------------
Advanced Micro Devices (NYSE: AMD) is slightly lower on the session amid reports it is planning to make a tablet announcement tomorrow.
According to a video on YouTube and a Williams Financial analyst, the announcement may relate to AMDs Brazos-T tablet.
The Brazos-T will comprise the Hondo APU and the Hudson M2T FCH (Fusion controller Hub), both of which include key power-saving features. Brazos-T is said to have a sub-4.5W TDP.
One slide leaked earlier in the year had the Time-to-Release for the platform right along with Microsoft's (Nasdaq: MSFT) Windows 8 operating system.
Williams said Brazos-T will compete "very well" with the likes of Intel's (Nasdaq: INTC) Atom platform and overall participation in the tablet market is a "strong positive" for AMD investors.
AMD is down about 40 percent year-to-date, currently at lows not seen since March 2009.
Poor forecast for 2013 on analyst's day
Andy, you will look good on Chuck's payroll. Why are you so bitter? No one is begging you to invest in Intel. It appears that you lost a ton of money on Intel and some thing terrible happened to you at the hands of Intel.
How this news plays in light of Microsoft comments. The only issue is its availability
----------------------------------------
PALO ALTO, CA -- (Marketwire) -- 10/01/12 -- HP (NYSE: HPQ) today introduced the HP ElitePad 900, a tablet that balances a beautiful design with enterprise-grade features, functionality and support.
Designed for business and government, it features HP ElitePad Smart Jackets,(1) which add connectivity options and an additional ultra-slim battery for longer runtime, along with specific add-ons that customize the tablet for specialized uses.
The HP ElitePad is an ultrathin, lightweight tablet designed for Windows 8(2) that delivers features to keep IT managers happy and touts a design that employees will crave. It offers the full serviceability, enhanced security and manageability found in HP Elite PCs, and military-grade durability for drops, vibration, dust, temperature extremes and high altitude.(3)
"Businesses used to face a tough purchase decision: How to find a product that will delight employees and help them be more productive, while also making sure IT can secure and manage it," said Todd Bradley, executive vice president, Printing and Personal Systems, HP. "The HP ElitePad meets all those tests. It combines the great style and user experience consumers demand with the features IT requires."
A tablet that is made for business Ergonomically designed to fit comfortably in the hand, the HP ElitePad offers a 10.1-inch diagonal display, weighs just 1.5 pounds(4) and measures 9.2 millimeters (mm) thin. The 16-by-10 aspect ratio maximizes the display area for ideal viewing of traditional business applications, as well as video content. Precision crafted, with an eye toward fit and finish, the HP ElitePad uses stylish, premium materials such as CNC-machined aluminum and Corning Gorilla Glass 2.
Powered by next-generation Intel mobile processors, the HP ElitePad delivers PC productivity for those on the go and Intel x86 compatibility for existing business application support. It is designed for Windows 8 and supports touch-, pen- or voice-based input. The HP ElitePad also provides power efficiency and smartphone-style convenience with compatibility for familiar Windows applications, as well as easy integration into existing IT environments.
The unique, productivity-enhancing ecosystem of HP Smart Jackets and additional accessories designed specifically for the HP ElitePad expand the tablet's potential, turning it into a total enterprise solution: (1)
HP ElitePad Productivity Jacket -- includes an integrated keyboard, connectivity ports, SD card reader and adjustable viewing angles for a complete computing experience. HP ElitePad Expansion Jacket -- adds USB, HDMI and other connectivity to get more done on the go. Adds even longer battery life when bundled with the optional HP ElitePad Jacket battery.(5) The HP ElitePad Rugged Case -- provides military-grade reliability and enhances the stylish profile of the ElitePad for added protection. HP ElitePad Docking Station -- delivers an enterprise-class desktop experience with an added keyboard and monitor and also charges the tablet. Or, use it to set the tablet up as a secondary screen for phenomenal multitasking. HP Executive Tablet Pen -- lets customers write messages and notes in their natural handwriting directly on screen and then save or convert to typed text for use in other applications.Loaded with tools for mobile work or playThe HP ElitePad tablet's 1080p front-facing video camera and 8 megapixel (MP) rear camera with an LED flash and included CyberLink YouCam software help users easily communicate face to face, create high-definition (HD)(6) web videos or record training videos without high production costs.
Powered by technology from HP Labs, the company's central research arm, new HP PageLift(7) is an application that automatically trims, correctly lights and orients a captured image of a whiteboard, paper contract or other document so it is ready to use or share without requiring manual editing.
Users can easily print directly from their HP ElitePad to any ePrint-capable HP printer or to a networked HP printer without the need for downloading drivers. HP ePrint software(8) allows users to print remotely at more than 24,000 public locations such as hotels and business service retailers.(9) The HP ElitePad also helps small workgroups connect with HP Wireless Hotspot, a desktop application that allows users to share a wireless internet connection and network bandwidth.(10)
Additional user-experience software includes the CyberLink Media suite, which enables users to manage and create audio and video content with the same easy-to-use interface as other HP business PCs. Plus, users can record and listen to audio with a stereo microphone and headset jack that feature the richness of SRS Audio.
Information management is made easy with Evernote, which captures, saves and synchronizes information across devices with impressively quick search capability, and Skitch software that eases collaboration with colleagues by quickly marking up images with captions or sketches.
Manageability, deployment and security for IT environmentsThe HP ElitePad offers a long life cycle, stable image and HP Global Series Support, all of which IT managers expect in an enterprise tablet. It also features a one-year standard warranty, with the option for a three-year warranty via HP Care Pack Services. The HP ElitePad is fully serviceable with an optional, industry-unique service tool for HP Self-Maintainers that allows customers to access the panel, battery, motherboard and unibody chassis, helping reduce downtime and keep sensitive data and devices in-house.(11)
In addition, organizations will appreciate the enterprise-caliber data, device and identity protection from HP Client Security,(12) including HP BIOS Protection, Security Manager and HP Drive Encryption. Additional security features include Device Access Manager, Computrace(13) and Sparekey.
Device deployment and ongoing support and maintenance are made easy with x86 compatibility and support for HP Client Management solutions. The LANDesk Management Suite(1) also increases security and eases management by providing differentiated tools to locate and protect data on lost devices, remotely capture SIM card info for mass WWAN activation(14) and enforce geographic policies to remotely lock, full wipe or selectively wipe data.
AvailabilityThe HP ElitePad 900 is expected to be available in the United States in January 2013. Pricing information will be announced closer to availability.
This announcement follows HP's unveiling of touch-enabled notebooks on Aug. 30, all-in-one desktops on Sept. 10 and a new lineup of consumer and business PCs on Sept. 20.
About HPHP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world's largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP is available at http://www.hp.com.
(1) Sold separately or as an optional feature. (2) This system is Windows 8 certified and supports the Windows Store user interface. The integrated display resolution is below the threshold for Snap, a Windows Store interface feature that allows two Windows Store applications to be viewed simultaneously. This feature may be enabled by attaching an external 1,366 x 768 or higher resolution display. (3) Preliminary test results based on preproduction models. MIL-STD-810G testing was not intended to demonstrate fitness for U.S. Department of Defense contracts or for military use. Test results are not a guarantee of future performance under these test conditions. (4) Weight will vary by configuration. (5) Requires optional HP Smart Jacket and secondary battery. (6) High definition content is required to view high-definition images. (7) Requires Windows 8 Pro. (8) Requires an internet connection to HP web-enabled printer and HP ePrint account registration (a list of eligible printers, supported documents and image types, and other HP ePrint details is available at www.hp.com/go/eprintcenter). Requires optional broadband module. Broadband use requires separately purchased service contract. Check with service provider for coverage and availability in specific area. Separately purchased data plans or usage fees may apply. Print times and connection speeds may vary. (9) Use of HP ePrint at HP Public Print locations requires internet- and email-capable smartphone or tablet with separately purchased wireless internet service, and the HP ePrint or HP ePrint software. Availability and cost of printing varies by location. A list of applicable smartphone and tablet operating systems is available at www.hp.com/go/eprintmobile. (10) The HP Wireless Hotspot application requires an active internet connection and separately purchased data plan. While HP mobile hotspot is active, on-device applications will continue to work and will use the same data plan as the mobile hotspot. Mobile hotspot data usage may incur additional charges. Check plan for details. Requires Windows 8. (11) Available for HP Authorized Service Providers or HP Self-Maintainers only. Additional information is available at www.hp.com/partners/SMprogram. (12) Requires Windows 8 and initial user set up. (13) Computrace agent is shipped turned off, and must be activated by customers when they purchase a subscription. Subscriptions can be purchased for terms ranging for multiple years. Service is limited. Check with Absolute for availability outside the United States. (14) Broadband use requires separately purchased service contract. Check with service provider for coverage and availability in specific area.
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This is bad. But here is a quote from the article;
-----------------
Tablets and laptops convertible into tablets built on Clover Trail will be available Oct. 26, said Jon Carvill, a spokesman for Santa Clara, California-based Intel.
“We’re excited about the opportunity for Windows 8 tablets with a broad range of” Intel chips, Carvill said. “We’ve collaborated very closely with Microsoft in extensive testing and validation” for chips, he said.
----------------------------------
I am not sure what is the issue. I have a feeling that ARM based tablets including one from Microsoft is in trouble.
This guy is complete liar. He states that reference design were provided when in yesterday press release Intel stated the new tablets are designed to Intel ref. designed documents.
He is a bitter person and very bitter towards Intel for some reasons. He wants confidential information exclusive to him from Intel.
It is a great video. Let the real competition begin.
It appears that these 2 different devices. Clovertrail/Cloverview is Z2760.
That is up to Intel partners to announce those. Intel has provided reference design for the current design. If the products announced does not catch with customers, you could see those.
It would be nice to have 7" tablets announced at the same time.
This could change the landscape if the pricing is right. Corporate adoption of these tablets will increase with the features that you found in regular laptops.
Once these are consumers hand and reviews are compared to ipad, only then one can be sure.
Acer*, ASUS*, Dell*, Fujitsu*, HP*, Lenovo*, LG Electronics*, Samsung* and ZTE*
to Offer Host of New, Full-Featured Intel-Based Tablets
NEWS HIGHLIGHTS
* Intel-powered tablets and tablet convertibles offer users the best Windows* 8
experience and deliver a range of new features from enhanced media capabilities
to security built for the enterprise.
* Intel-based tablets with Windows 8 are optimized for mobility, provide support
for the Windows user interface and maintain flexibility to support for the
millions of existing applications, and a full range of devices and other
full-featured peripherals such as printers.
* New Intel? Atom processor Z2760 architected specifically for Windows 8 offers
outstanding battery life, and always-on technology in sleek designs that are
lighter, more responsive and enable a multitude of options for mobile users.
SANTA CLARA, Calif.--(Business Wire)--
Intel Corporation and its OEM partners today unveiled the first wave of new
tablets and tablet convertible designs based on Intel Core vPro, Intel Core and
Intel Atom processors, including the new Atom processor Z2760 (formerly
codenamed "Clover Trail").
The new Intel Atom processor-based devices provide consumers and business users
with a wide choice of innovative, sleek and stylish designs with long battery
life and class-leading performance. Additionally, they will be able to
experience Windows* 8 while continuing to run all the programs they know and
love.
"This is just the beginning of Intel`s effort in the tablet market, and our goal
is to deliver products that fit the spectrum of evolving needs of both consumers
and business users without compromising on compatibility, experience or battery
life," said Erik Reid, general manager, Application Processor Platforms for
Intel`s Mobile and Communications Group. "When people or corporations buy a
device with Intel Inside?, they`re getting the best of Windows 8 features with a
computing experience that just works."
Intel Atom Z2760: Powerful Computing On-the-Go
The Intel Atom Processor Z2760 allows for the thinnest, lightest tablets built
on Intel architecture - as thin as 8.5mm and as light as 1.5 pounds - making
carrying and storing a powerful tablet less cumbersome and more convenient.
As more and more people take their devices on-the-go, such considerations as
battery life and size have become increasingly important, and devices using the
Intel Atom Z2760 offer a full-featured tablet computing experience that doesn`t
compromise its performance over battery life. The dual-core, four-thread SoC
provides exceptionally long battery life with more than 3 weeks of connected
standby and more than 10 hours of local HD video playback.1
Tablets and tablet convertibles powered by Intel Atom processors and running
Windows 8 deliver a highly intuitive and responsive experience using touch,
keyboard and mouse or a pen, while providing capabilities such as Intel? Burst
Technology, Intel? Hyper-threading Technology. Utilizing the multitasking
capability of Intel architecture, people will experience incredibly fast
response, allowing them to swiftly load and switch among their favorite
applications.
Enhanced Security, Collaboration and Software Support in the Enterprise
Intel is enabling a choice of innovative mobile designs for the enterprise,
including those powered by Intel Atom, Intel Core, and Intel Core vPro
processors. Intel architecture provides corporations with the flexibility and
compatibility they are used to, resulting in a lower total cost of ownership
(TCO) coupled with the personalized productivity that people crave.
Intel tablets with Windows 8 support the millions of existing applications,
devices and full-featured components used within corporations and include the
security and manageability features corporate IT managers demand. Additionally,
these devices easily integrate into existing corporate infrastructures,
providing the ability to join a domain, access shared network resources and run
both new Windows Store apps and familiar Windows desktop applications side by
side.
The Intel Atom Processor Z2760 tablets deliver the mobility and experience that
business users desire and set a new bar for addressing IT demand for built-in
security and manageability with Windows 8. The new Intel Atom Processor Z2760 is
built to seamlessly integrate into a business computing environment. Intel Atom
Z2760 offers Secure Boot and firmware-based Intel Platform Trust Technology
(PTT).
Intel Core processor-based tablets with Windows 8 will provide the intelligent
performance and responsive power for the most productive and personalized
employee experience. In addition, tablets based on the Intel Core vPro
processors deliver the most comprehensive and flexible enterprise-class
hardware-assisted security, manageability and virtualization capabilities for
business computing.
With Intel vPro technology, Intel Core-based processors provide remote system
access and management, regardless of power or OS state, and offer the most
robust set of security features including Enhanced Intel? Anti-Theft Technology,
Intel? Secure Key, Intel? OS Guard, Enhanced Intel? Identity Protection
Technology, and Intel? Trusted Execution Technology.
Intel is actively engaged with a broad cross-section of the software ecosystem
to provide the best experience possible for applications running on Intel-based
devices. With over 7,000 member companies, the Intel Software Partner program
helps support optimization efforts by concentrating resources, references, and
tools for software optimization into key Technology Focus Areas. Additionally,
through the Intel Software Network, developers can connect with communities,
tools, training and events to help deliver more efficient, higher-performing
software to the market more quickly.
About Intel
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company
designs and builds the essential technologies that serve as the foundation for
the world's computing devices. Additional information about Intel is available
at newsroom.intel.com and blogs.intel.com.
Intel, Atom, Core and the Intel logo are trademarks of Intel Corporation in the
United States and other countries.
*Other names and brands may be claimed as the property of others.
1. Based on power measurements on a 10 inch Intel reference design at 200 nits
with WiFi on, 30Wh battery.
Intel Corporation
Kathy Gill, 503-696-6151
kathryn.m.gill@intel.com