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Apple reports today, Intel misses mark

updated 12:15 am EST, Wed January 18, 2006

Intel misses estimates

Apple today will report its financial earnings for its fiscal 2006 first quarter as well as hold its .

Jobs also noted that the company sold over 14 million iPods, a 300 percent increase from the year-ago quarter, and its iTunes music store surpassed 850 million in downloads.

Based on the Macworld numbers, analysts expect a strong quarter, according a CNN/Money report.

"We think it's going to be a very strong earnings call, with no heavy expenditures, and we expect earnings and growth to continue with the transition to Intel," said Richard Doherty, an analyst with market research firm Envisioneering Group. "We haven't seen any slowdown in sales since the close of the quarter."

Intel misses mark, lowers guidance

Meanwhile, Intel, who reported earnings on Tuesday, saw its fourth-quarter profit and sales rise but missed Wall Street expectations Tuesday as it faced difficulties in meeting demand for some products and experienced lower-than-expected average selling prices. Intel reported a profit of $2.45 billion, or 40 cents per share, compared with a profit of $2.12 billion, or 33 cents per share, in the same period in 2004.

Despite the 16 percent year-over-year improvement, Intel stock dropped nearly 9.5 percent in after-hours trading on the results and forecast, which the company blamed on a combination of "smaller events," including a chipset shortage, the lower prices and a weakness in demand for desktop PCs, according to the AP.

Despite expected gains from its partnership with Apple, Intel also reduced its revenue guidance for the first quarter, saying it expects sales of between $9.1 billion and $9.7 billion, below analysts' expectations of $10.05 billion for the upcoming quarter.

 
Previous Comments

Here's an idea.

01/18, 02:40am reply

Apple should buy Dell and give its stock back to its investors.

*snicker*

iomatic

Mac Elite

Joined: Oct 1999

0

Declare a dividend

01/18, 07:31am reply

High time for a dividend declaration for the loyal shareholders.

Stephen G. Esrati

Fresh-Faced Recruit

Joined: Sep 2001

0

Makes sense

01/18, 09:12am reply

Intel is getting slaughtered by AMD in the PC race as their marketshare is slowly but surely growing. For the second time (iPod was the first), people are picking the superior solution vs the inferior solution. AMD makes the fastest performing CPU's and it's driving people to them.

That and the fact that their presence is increasing from all manufacturers which means less for Intel.

In fact the only company that is actively seeking Intel is Apple.... Funny, they go from one underperforming chip to another (Intel Core Duo)..... I still love my Macs (PPC's) and hopefully by the time they need retiring, Apple will have seen the light and offer AMD CPUS, not the POS's from Intel.

itguy05

Forum Regular

Joined: Apr 2005

0

AMD mobile chips?

01/18, 09:57am reply

I know that AMD has the desktop crown right now, but do they have mobile chips that outperform Intel's? I thought AMDs desktop chips got their speed through brute force and by being power pigs (gee, sounds like the G5)

Glasspusher

Fresh-Faced Recruit

Joined: Oct 2000

0

Yes they do

01/18, 09:59am reply

Look up AMD 64-M It's the mobile version of the AMD-64, which has great performance and battery life.

Actually, AMD uses less power across the board than Intel. It's the P4 that is a power PIG and is a DOG which requires the high clockspeed for performance.

itguy05

Forum Regular

Joined: Apr 2005

0

Also

01/18, 09:59am reply

Even on the server end of things the Opteron outperforms the Xeon while using less power and generating less heat.

itguy05

Forum Regular

Joined: Apr 2005

0

AMD vs intel

01/18, 10:54am reply

thanks for the info itguy05. I knew the P4 was a waste- even intel has pretty much admitted it and gone back to centrino type PIII designs. High clock speed isn't everything, as intel has finally admitted.

Glasspusher

Fresh-Faced Recruit

Joined: Oct 2000

0

AMD

01/18, 11:18am reply

Chip leads fluctuate all the time. Look at the video card industry. ATI was on top. Then NVidia started wiping their asses with ATI, and everybody mocked ATI. Then ATI regained the lead, and it was NVidia who was falling behind. Competition does these kind of things.

To think that AMD is 'on top' and is going to stay there is probably breathing the same fumes Jobs was when he said the G5 would hit 3 GHz.

testudo

Fresh-Faced Recruit

Joined: Aug 2001

0

the intel choice

01/18, 11:19am reply

Job's reasoning (for choosing Intel over AMD) was sound, and he was careful to keep the door open for any other future venders. It was a few months ago that the shock of leaving the PPC was so acute... listen to us now.

xoch

Fresh-Faced Recruit

Joined: Jan 2006

0

Except

01/18, 02:08pm reply

Except the performance lead has been this way since the introduction of the Athlon in, what, 2000. And it extended further back than that, depending on the application (AMD excelled in office type apps).

Intel tried to regain the lead - P4 Emergency (err, Extreme) edition, but it was not really competitive or available.

And I still have to see how the reasining for Intel was sound. Nobody knows if Intel can deliver. Judging by past past paper launches, it will be doubtful. And then what's to say Apple will get first crack at the new chips if, say Dell and HP want it too?

itguy05

Forum Regular

Joined: Apr 2005

0

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