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Rather than get mixed up and confused, I seek the absolute truth here at LinuxForums. What has happened to Intel? Is the company folding? Has AMD changed the chip world ...
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  1. #1
    Linux Enthusiast cousinlucky's Avatar
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    What is happening to Intel?


    Rather than get mixed up and confused, I seek the absolute truth here at LinuxForums. What has happened to Intel? Is the company folding? Has AMD changed the chip world that greatly? This old man would like to know, Please!!

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    With stiff competition, the overhead in PC's simply isn't there. To gain market share and keep it, you must reduce chip prices and to stay competitive with AMD, they have had to cut their prices to the point that their profit margin isn't looking that favorable. In order to make the bottom line look a little better for the investors, they have to streamline and reduce their costs and the easiest way to achieve cost reduction is by liquidating human capital.

    Dell is also facing similar circumstances along with HP and Gateway. I look for Gateway to be swallowed up any day now and Dell will experience layoffs I'm sure. It's the sign of the times, cheap PC's are the standard and the manufacturers are pricing themselves out of business in favor of market share.

  3. #3
    Linux Engineer d38dm8nw81k1ng's Avatar
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    intel recently developed a new technique for lowering the cost of producing their chips by lowering wasteage. that's what lets them charge lower prices. i'd imagine that some of the redundancies could have come from that. then there's the point mentioned above, they need to cut costs further to get the price of their chips low enough to massively undercut AMD.
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    Linux Newbie Van Halen Man's Avatar
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    All that I heard was that they had to cut a ton of jobs because of the competition. I forget what the company was called though. I heard it in the news paper.

  5. #5
    Linux Guru fingal's Avatar
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    I've noticed something of a trend in the IT industry for massive recruitment one moment, and mass redundancies the next ... Or is this just my perception? I can think of some friends of mine who've been through that.

    This is off-set by the fact that IT jobs tend to pay very well - in most cases - and there is still plenty of demand out there. But quite a few IT professionals seem to end up as contractors or consultants. Perhaps it depends on which sector you work in?

    As for Intel I don't buy their chips, prefering the keener priced AMDs. There really is a trend for 'big fish eating smaller fish', until just one large - and very bloated - fish is left in the pond. I would argue that the consumer is the loser when that happens. Perhaps in this case, it won't?

    I don't believe quality should ever be sacrificed in favour of cost savings. Yes, there are short term benefits, but long term it's a poor strategy.
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    Linux User Dark_Stang's Avatar
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    Intel really needed to cut down on their prices. I thought they were always overpriced. Non-Intel chips that are rated the same as Intel chips are/were usually cheaper and consumed less power.

    Allthough this supposed Quad Core is supposed to be the **** when it comes out... *shrugs* Until cell computing comes around I don't think I'll be paying much attention to Intel.
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    Linux Guru techieMoe's Avatar
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    Intel supplies chips to the 3 most successful computer hardware vendors in the US (Dell, HP/Compaq, and now Apple). They're not going to "fold" any time soon. The revenue from their Core series alone should be enough to keep them afloat for several years to come.

    I see that they have laid off a lot of people, but I don't see that as a bad thing. Intel is a monstrously large company. Surely there are lots of areas where they could cut back staff and make their business more efficient. Microsoft could benefit from the same thing.
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  8. #8
    Linux Enthusiast apoorv_khurasia's Avatar
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    Quote Originally Posted by Dark_Stang
    I thought they were always overpriced
    This always happens in any field. If you start something which no one else makes then you can price it the way you want (and recurit as many as you want). The moment you face competetion you come down to earth. (I think the statement I have made it is too trivial to be posted...but anyways).
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    Quote Originally Posted by apoorv_khurasia
    (I think the statement I have made it is too trivial to be posted...but anyways).
    This is the most awesomely honest statement I've ever seen posted on a messageboard.

    One other thing probably worth mentioning about Intel is that they have relied on brand-recognition for years in pricing chips. They probably appear more expensive to the average computer builder, but to the average user, Intel is still probably the only chip company they've heard of. Intel has worked hard with advertising and branding to build their image to such a place where they can charge more for their chips, but AMD is starting to develop brand recognition and I think this is probably the biggest threat to Intel.

  10. #10
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    Quote Originally Posted by techieMoe
    Intel supplies chips to the 3 most successful computer hardware vendors in the US (Dell, HP/Compaq, and now Apple). They're not going to "fold" any time soon. The revenue from their Core series alone should be enough to keep them afloat for several years to come
    50% of dell is going over to amd (They ordered 2 million), compaq/hp already are using 35-45% amd. Honestly, they are in trouble, the c2d series, while it may out perform the a64s by a little, is EXPENSIVE to produce, chips rated at over 2.2ghz yeilds are @ ~5%, not a good sign.

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