Replies to post #133049 on Intel Corp (INTC)

[wbmw]

dropping another $10-$15 billion to get the mobile group to break even makes no sense for anybody but the employees of Intel...

Break even...? You must be facetious.

Strategic investments by definition sacrifice current profits in order to gain *larger* future profits.

I won't deny that Intel's huge investment in mobile is by far a risky an uncertain move, but if they gain the market share they desire, I would certainly hope for them to at least 5x the investment (if not, 10x, or more...).

Only question is, when? There's a time value to money for investors.

Let's ignore sunk costs, by the way. Intel may have lost a few billion prior to Krzanich taking the helm, but that's water under the bridge. His strategy would have to presume that these billion-dollar-per-quarter losses in the mobile group start to trim considerably over the next year or two, and turn profitable within the next 3-4 years. After that, it would have to be a significant profit center in order to justify the current investment. If not, he's not doing his job as CEO.