Intel Corp (INTC)

[alan81]

I have been complaining about the delays in moving the phone products to newer technology, but I am now thinking I had that wrong. I now think penetrating the market is going to be more about cost than performance or features. By using N-1 generation technology Intel is able to price where they need to in order to use up that excess older capacity, while keeping the laptop market on the newer technology.

The phone market is about 4X the size of the PC market, so it can easily soak up any excess capacity created by the stagnant PC market.

In 2013 I see them completing the transition of the PC from 32nm to 22nm, and using all available 32nm capacity to build phones. In 2014 they will begin to shift the PC from 22nm to 14nm, and convert the 22nm to phone products.

This seems like a sound strategy to me.
Alan