Replies to post #120139 on Intel Corp (INTC)

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What has produced this hugely dramatic change? Increased perception of competition from Intel is quickly eroding ARM's P/E ratio. Why hasn't Intel's P/E gone up dramatically? It would only make sense. Well, you would have to ask the statistically-challenged analysts at Wall Street's largest firms. They seem to be totally unaware that the tipping point and the end of the ARM era have arrived.

Because they believe that all competitors will drop prices - Intel to win new business, and ARM to preserve their share. This is a fairly reasonable assumption, too - but I don't think they realize that Intel's PC share is fairly well protected. I think if Intel fought hard in pricing to win phone and tablet share, they might lower their corporate wide blended gross margins, but their gross margin dollars will be incrementally larger. And IMO, that's the more sensible business move - and I have no idea why it always tends to get punished by Wall Street.