“Intel Corp plans to reduce its global workforce of 107,000 by about 5 percent this year as the chipmaker, struggling with falling personal-computer sales, reprioritizes toward faster-growing areas, a company spokesman said on Friday,” Noel Randewich reports for Reuters.
“The announcement comes a day after Intel posted a fourth-quarter earnings report that did little to dispel concerns about a slowing PC industry,” Randewich reports. “‘This is part of aligning our human resources to meet business needs,’ spokesman Chris Kraeuter told Reuters on Friday.”
Randewich reports, “Shares of Intel were down 3.45 percent at $25.62.”
Read more in the full article here.
MacDailyNews Take: Here, bunny, bunny…
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So this is why AAPL’s dropping today?
NO! Arnold Z, Apple’s shares are falling because intel supplies Apple inc. with chips, which translated means that Apple inc. have not been doing so well that is why they are not buying a huge quantity of chips from intel.
You Know, Because Apple inc. is a DCW? 🙁 The Swines….Anal ysts.
That’s part of it. Although Apple only accounts for a small percentage of Intel’s sales, and even if Apple’s sales are increasing it’s not enough to offset the massive declines in PC sales.
The other part of it the FUD about people not lining up at China Mobile stores for the iPhone. Of course, nobody lines up when pre-sales have been going on for weeks, and the iPhone is available at other cell provider stores.
But that doesn’t stop the options sellers from using these FUD stories to try to save their asses on Friday, when weekly options close. The Max Pain share price where options sellers lose the least money for this week is $520.
I wonder how many of Intel’s senior managers and board members are Republican voters: they seem to have the same inclination to believe what they want to believe. The impact of Apple’s move into mobile was forecast the day the iPhone was released with a non-Intel chip, but perhaps Intel was listening to Steve Ballmer… And, as with climate change, when the truth is no longer avoidable, their reaction will always be too little, too late.
Unlike most American corporations, which work on a 90 day cycle and do little long-term planning, Apple looks far into the future and sets their direction on their “North Star”, as Tim Cook puts it. By the time anyone realises what Apple is doing it is way too late to do anything about it.
Apple will continue disrupting markets. It is how the corporation is structured and how they focus their people.
Intel, Dell, HP and perhaps even Amazon and Google will either disappear altogether or be relegated to feeding off Apple’s scraps like those fish that swim beside the mouths of sharks.
Since Intel has a huge presence in my neck of the woods (Oregon), I hope Intel doesn’t disappear like I believe MS will. Everyone I know who works for Intel is a good person who exhibits no allegiance to MS and Windows. These folks are just as excited about doing stuff for Apple as they are about doing anything Windows related.
The problem is that for way too many years Intel made most of their money selling chips for Windows machines. Now that the Windows market is dying, Intel is trying to reposition itself into areas that have some future. Let’s hope they are successful.