Intel misses revenue mark by $200 Million

By Justin Mann on January 17, 2006, 7:45 PM
While a cash flow of $10.2 Billion isn't small change, a mere .2 of that is what Intel missed their predictions by for Q4 2005, much to the chagrin of investors. Dual Core took off in the second half of 2005, but overall Intel experienced low CPU sales during the last bit of the year, which is what Intel is pointing at as the cause of the miss. Of course, that's not really bad news for Intel.

"2005 was our third consecutive year of double-digit revenue and earnings growth, leading to the best operating results in the company's history," said Intel CEO Paul Otellini. "Although we fell below our expectations for the fourth quarter, we enter 2006 with exciting new products like the Intel Core Duo and Viiv."
Intel made a lot of promises at IDF last year and made a lot of people drool at the CES, so it's likely that they will push even harder this year. I won't be surprised to see Intel make big gains in their targets with Viiv and dual-core laptops, but hopefully AMD will continue to keep them on their toes.




User Comments: 21

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blue_dragon said:
I just love competition
exscind said:
I'm not surprised that Intel fell short of its expected mark. AMD really gave Intel a competition in 2005. AMD CPUs were, and are, better in my opinion. More work per cycle, which results in lower heat build-up, better architectural designs, etc. etc. gave AMD a big edge in the consumer market. As if to outdo itself, AMD started making Opteron CPUs for Socket 939, which made many overclockers have wet dreams during the night. It seems like Intel is focused more on the laptop market than the desktop market these days; I hear about new products like dual core (Core Duo, as Intel so intelligently put it) and Viiv, but almost nothing on the desktop market. So it is no surprise that AMD is creeping into the desktop segment, and with great success.
Need_a_Dell said:
This really is considered chump change to intel. 200 mil is just a few less cars in the driveway. They still made a ton of dough.
otmakus said:
Still this should be considered a warning to Intel. The decline in earning happened in the end of 2005, and we can expect that decline to continue in 2006. Although Intel still has the lead in laptop world, AMD is far ahead of them in desktop world, and the trend will be even more obvious late this year, after AMD launches socket M2 processors. People won't have any reason then to buy Intel's processors.
CrossFire851 said:
Aw tough break... I wonder if and how much AMD went over theres.
cyrax said:
ouch! 200 mil. I suppose the profit will continue to slide since investors are spooked by the weird recent moves by the company. Silly logo and slogan not helping the situation either.
flipi said:
This is just a proof about "Intel's supremacy" on the market and more, dropping the brand "Pentium" is another proof that thing look bad. Of course they had a large amount of proffit, by finding lost sheeps on the way, like Aple for instance. Personally, I think they should revise their programs if we don't want to see another monster be born - and here I talk about Amd -if left alone on the market. As for dual core cpu's there is nothing more to comment, everybody knows the bad things about latest Intel's creations.
Eko said:
Hopefully the competition will be tougher in 2006. Why? So that we may notice some serious decrease in dual-core processors, for example. Intel kept their products at a high cost, and AMD proved to be cheaper and more efficient. Why should I pay more for a product which is more expensive, gets hotter and can't be overclocked very much? Honestly, I was always a fan of AMD, but Dual Core kicks ass in each and every test - but it's still too expensive; I'm very pleased with my Venice 3200+, if not because of the results, at least because of Cool & Quiet facility.200 millions is a large amount of money and also an alarm signal. At this hour, Intel is clearly way behind, and could really use that leap forward...
paulwuzhere said:
I can wait for intel to slip releaseing 100s of PCUs that melt so AMD could get a little more well deserved bussiness. But really 200mill out of 10billion is more than my life is worth to them.(not say much) they will be fine...
nathanskywalker said:
hmm....[url]http://www.rte.ie/business/2006/0118/intel.html[/
rl][quote]Intel, which supplies the chips for some 80% of the world's personal computers, said revenues for the October-December period rose only 6% from a year earlier and 2% from the third quarter to $10.2 billion.[/quote]Wow, i guess i didn't know the numbers, because that is kind of surprising, however i guess the majority of home computers are still going to be those owend by people who really don't know the differrence between an AMD althon, and a P4. But who knows, mabye intel will get on the ball and start figuring out better ways to beat AMD...
vigilante said:
If anything maybe they will drive prices down to improve sales.But I also wonder, if now Intel will tighten its grip on OEMs, trying harder not to let AMD into that market share.
MonkeyMan said:
Intel vs AMD. This is what it has always been, and what it will always be, as long as both companies still exist. Intel, according to some spectators, is a neutral company. It definately has a place in the technological world, and has produced some great new technologies. I'm looking forward to Intels lineup for 2006, because I'm sure they will amaze the industry this year. They even changed their name, in which, I think is a move to renew the company. Look out AMD!!!!!! Intel is on the loose!!!! Anyway, I love them both, so no hard feelings here.
gudel said:
We use intel at work, that's hundreds of pc's. So they should be okay.
PUTALE said:
it's hard to believe that intel will be making such a big losss. I know that they don't really have the best seller out there but intel has been doing a lot of business with big comapnies such as DELL to sell their cpu, so they are still selling quite a lot of chiops. Plus, intel is selling all kinds of cpus. Man, I guess AMD really put a big pressure on the big intel.
YAMO! said:
I don't understand why AMD can't get more respect (see any investment rating board). I, as an AMD 3x customer (byoc AMD Athlon 3200, AMD 64 3400 notebook, and now a AMD X2 4400 cpu waiting for a mobo and case!-), is in the position ipod customers were in (what a great product, this company should go up in value)... but AMD doesn't... why not?! Even though the majority of our employees buy AMD personally, the company buys slower, more expensive intel machines... weird.
mentaljedi said:
AMD is better when it comes to desktops, especially in duel core. Intel definatly has the upper hand on laptops though.
Race said:
[b]Originally posted by YAMO!:[/b][quote]I don't understand why AMD can't get more respect (see any investment rating board). I, as an AMD 3x customer (byoc AMD Athlon 3200, AMD 64 3400 notebook, and now a AMD X2 4400 cpu waiting for a mobo and case!-), is in the position ipod customers were in (what a great product, this company should go up in value)... but AMD doesn't... why not?! Even though the majority of our employees buy AMD personally, the company buys slower, more expensive intel machines... weird.[/quote]This announcement from Intel may indicate that AMD is, in fact, getting more respect.According to a report on CNBC today, AMD is getting the upper hand on servers and laptops.An indicator may be in their respective stocks. After this announcement from Intel, the stock was down over 11%, while AMD's stock was headed the opposite direction.....up 14%.
DragonMaster said:
Suckers!! (Joking ;) )>but AMD doesn't... why not?!There's no ads on TV and when people will know that a PC is not a Pentium, Dell or HP, maybe they'll get more popular. I think things will go the other way when Intel mac will be available, 'cause Apple is "the maker of iPod"Here we have absolutely ZERO Dell and Intel ads. Anyways, I think CPU sales will just go down because people already have computers now. The higher sales of previous years were just because most people had their first computer coming home. Now, a lot of people have computers and I don't think that they really know that they should change it.
gamingmage said:
Poor Intel. Hopefully Intel will get going again after it drops the Pentium name and comes out with its new line of processors.
Cy6erpuke said:
Shame. I'm sure that AMD had a lot to do with it. Where did all that money go? I bought an AMD and so what any game lover who reads half a review!
JMag034 said:
Yep, AMD is gaining the market share.
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