Replies to post #131850 on Intel Corp (INTC)

[Unkwn]

It makes perfect sense when the investment community reacted so negatively to the 1.5% margin hit that came along with it. As the months rolled by that seemed the most likely reason to me too and said so here many times. They might still need contra-revenue for the ancillary chips like gps but that's more closer to $2 than $20 and the margin hit won't be 1.5% accordingly.

Well, first of all the share price is stable since the announcement - I don't see much negativity due to that from the investment community. Secondly, Bay Trail Entry is a redesign. The announcement was made in december, so about 4 months ago. I doubt Intel can make a redesign with such major changes (memory interface etc.) that quickly. Also, before starting the work, management must take decisions, discuss details etc. That also takes time. Therefore I believe the decision for Bay Trail Entry has been taken before the investor meeting where they announced the contra revenues. I think they originally wanted to have devices with Bay Trail first and then switch to Bay Trail entry. Something went wrong there.

By the way: Where are our Merrifield phones? I hope we don't have to wait for them another 5 months ...

Besides: If Bay Trail Entry was so easy and quick to make I really don't get why Intel released Bay Trail first which has the BOM issue. What type of planning was that?