toggle

AAPL Stock: 130.28 ( + 0.61 )

Printed from http://www.macnn.com

Intel cuts outlook, plans restructuring

updated 04:15 pm EDT, Thu April 27, 2006

The future of Intel

Intel CEO Paul Otellini has said he plans to restructure and resize in a sweeping overhaul that will affect "every part" of the company, according to one report. "We are very well aware of the realities of our current and future business outlook," Otellini said, adding that Intel is "taking actions to address the realities." Following its best ever financial year in 2005, the chip maker has been struggling with heavy competition from Advanced Micro Devices (AMD), as well as rising inventory levels, according to the Wall Street Journal. While the company recently predicted growth in revenues, a recent report showed a 38 percent drop in Q1 profit, which was accompanied by a negative outlook.

Despite increasing sales of from a newly formed partnership with Apple, the industry leader is bent on cutting costs and reorganization. "It's a much tougher 2006 than we thought a few short months ago," the executive said, announcing plans to slash roughly $1 billion in spending during the rest of 2006, along with plans for a broad overhaul. "Every part of Intel" will be part of the restructuring, which will focus on things like non-performing units, capital efficiencies and cost per unit, according to the report.

The company on Tuesday announced its new vPro technology, the newest addition to its brand portfolio targeting business and IT customers. Due in the third quarter--near Apple's WWDC timeframe--the new technology will feature an Intel Core microarchitecture dual-core processor with a 64-bit microarchitecture to offer significant gains in performance, as well as reductions in power-consumption. Apple could help leverage the speed and power consumption advantages in its future line of Intel-based Power Macs for professionals and could gain marketshare among users when combined with its Boot Camp software, according to analysts.

The tech giant is engaging in a 90-day review but will take action as soon as it identifies areas to revamp, according to the CEO. Otellini added that the decision is the biggest undertaking at Intel since the mid 1980s, and is designed to place the company in a better position for the future. When asked if the restructuring would include layoffs, Otellini did not comment on whether layoffs would be part of the restructuring.

"No stone will remain unturned or unlooked at," he said. "You will see a leaner, more agile and more efficient Intel Corp."




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. itguy05

    Joined: Dec 1969

    0

    Too little too late

    On the PC side, everyone knows AMD rules for perofrmance, power use, and reliability. AMD smokes Intel in most benchmarks (even the new Core Duos) and will mist likely be the winner even when Intel's new stuff comes out.

    Now I just wonder how this will affect Apple? The only good thing is that they can ship AMD solutions real easily and without the pains of the PPC -> InHell transition.

  1. seamuskrat

    Joined: Dec 1969

    0

    Apple Curse

    OK 3/3 Moto tanks when Apple uses them.

    IBM chip biz tanks with Apple. Intel has a hard time, now partnered with Apple.

    Hard to deny.

    Of course, in reality, that is not the case, but it sure is fun to think lil old Apple can have such an impact. Steve's secret strategy. Partner with Intel, make em cursed like Moto and release a new Apple CPU that blows em all away.

  1. Terrin

    Joined: Dec 1969

    0

    Not clear AMD is better

    ITguy, everybody does not know AMD smokes Intel new core duo. Everyone may know that AMD makes nice chips for the Window's world. Nonetheless, many tech experts suggest Intel's core duo stacks up very nicely against AMD's offerings and in some regards smokes it (e.g. power consumption). Moreover, Intel beat AMD to the market with its dual core laptop chip.

    http://www.informationweek.com/hardware/showArticle.jhtml?articleID=177100130

    http://techreport.com/reviews/2006q2/core-duo/index.x?pg=1

    It would be nice if you back up your assertions.

  1. itguy05

    Joined: Dec 1969

    0

    Yes it is

    Your first is merely marketing drivel.

    And AMD's mobile offerings are competitive from both a power and performance standpoint - AMD already rules in the power/watt for server and desktop chips.

    The CD chip is a decent chip and it's about time Intel offers something competitive. To think AMD is not working somethig to trump Intel would be idiotic. The CD chip is the first compelling thing Intel has shipped since the Pentium shipped back in 96 or 97. They have been plaiying catch up to AMD for that long....

  1. aristotles

    Joined: Dec 1969

    0

    Itguy05 get a life

    Seriously, you AMD fanboys need to get a life.

    AMD could have to best chips in the world but it would mean nothing if they were not able to deliver enough chips quickly enough. They also are not able to deliver complete chipset solutions.

    I'm sure Apple looked at but Intel and AMD and their roadmaps and concluded that Intel had the better roadmap for the future.

    The fact of the matter is that AMD may have some decent chips right now but they are going to get killed in the coming quarters because they have nothing on their roadmap for the future right now.

  1. itguy05

    Joined: Dec 1969

    0

    You should check your

    facts before spouting like an idiot... "AMD could have to best chips in the world but it would mean nothing if they were not able to deliver enough chips quickly enough. They also are not able to deliver complete chipset solutions. "

    AMD has no capacity issues any more. No problems meeting demand, unlike Intel who has had more paper and limited edition releases than anyone ecxept, maybe IBM. AMD's capacity is quite good now.

    AMD can and does deliver complete chipset solutions: http://www.amd.com/us-en/Processors/ProductInformation/0,,30_118_873,00.html

    I have a few Opeterons using these sets and they are rock solid and stable.

    "The fact of the matter is that AMD may have some decent chips right now but they are going to get killed in the coming quarters because they have nothing on their roadmap for the future right now."

    No they are not. You and I have no idea what AMD hasin the pipeline.

    Some bakeoff sponsored by Intel on non shipping CPU's does not = AMD getting killed.

    Please do a little research before spouting off.

  1. aristotles

    Joined: Dec 1969

    0

    ITguy05 AMD==no roadmap

    You just said that neither of us know what AMD has in store. Let's think about that for a moment. Hmmm... That is because AMD does not have a roadmap and they do not have one because they have nothing planned for the future.

    Intel has a roadmap laying out their future plans. This provides a company with something they can plan future products against. Do you really think Apple would want to go with a company with no public roadmap after having dealt with Motorola and IBM?

  1. itguy05

    Joined: Dec 1969

    0

    Please.

    AMD does have a roadmap. Roadmaps are pointless. IBM had a roadmap for the G5 and look where it got them....

    Roadmaps really are nothing more than a Pi$$ing document. I've been in IT long enough to realize you buy for today's problems, not what someone may or may not do tomorrow. When we do our buying, we never look at the roadmaps as we need the stuff today, not in 3-24 months when the stuff on the map may come out.

    I doubt the P4 Emergency Edition was on Intel's roadmap right until it came out. And Intel has faltered on their roadmaps plenty of times in their history (as has AMD, Motorola, IBM, etc.), so just because Intel says something it is not Gospel.

    And if you think the roadmaps mean much to Apple, you are joking. Apple now just became the Dell of the computer world - Intel most likely designs and builds the motherboards to Apple's specs, same as Dell, Compaq, etc. There is no reliance on a roadmap when you don't build anything. Apple just buys what Intel is selling.

    To think this is different would be stupidity. Hate to think this way, but Apple now is just another PC manufacturer.

  1. itguy05

    Joined: Dec 1969

    0

    Also

    "That is because AMD does not have a roadmap and they do not have one because they have nothing planned for the future."

    You could say the same about Apple since they have no roadmap. Therefore they have nothing planned for the future. No OSX after Leopard, no Intel towers, no Intel eMac, no Intel iBook....

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Advertisement

Recent Reviews

Brother HL-3140CW Color Laser Printer

It's inevitable, at some point somebody needs a hardcopy of a document. Paper never runs out of battery charge, after all. Our Mom, j ...

Linksys WRT1200AC Wi-Fi Router

Once upon a time, a brand-new Linksys router showed up on our doorstep. So we gathered some network-minded friends together, and hooke ...

Rapoo A300 Mini Bluetooth NFC Speaker

The Rapoo Bluetooth Mini NFC Speaker is a little metallic box about the size of a baseball. In spite of its small size, we were very p ...

toggle

Most Commented