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Intel Stock Drops as Foray Outside of PCs Stall

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rainless

Old Member
Joined
Jul 20, 2006
(Reuters) - Intel Corp (INTC.O) reported lower-than-expected quarterly revenue due to an unexpected slowdown in growth at its data centre business, on which the world's largest chipmaker is banking to reduce its reliance on the personal computer market.

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This happens pretty much every time a company tries to shift away from their core business. It proved disastrous for IBM many years ago. And more recently it was a disastrous strategy for HP under Carly Fiorina.

So why the hell would Intel want to "reduce their reliance on the personal computer market"?

Oddly enough... while they were busy losing 4% of their revenue... demands for their personal computing chips actually went up.

I can tell you, from experience, that there's no affordable substitute to building a PC. Even if it's just a Hackintosh.

The number of YouTube videos about "Building a PC more powerful than the latest high-end Mac" has exploded in recent years. (Even the second Old Spice man has a YouTube video up about it.)

With the advent of 4K video editing, DaVinci Resolve, and complex audio and compositing software... people are once again becoming bolder in their computing tasks and demanding machines capable of handling the heavy workloads.

I myself hadn't attempted to build a brand-new machine in over a decade. But DaVinci Resolve thought my $2000 MacBook Pro (with just a 512mb NVIDIA graphics card built in) was a joke.

There was no substitute for what I was trying to do. (And why am I writing all of this hear instead of in my blog? Hmm... Gotta work on that.)