“Intel Corp. lowered its financial expectations for the year and reported its first decline in sales of data-center chips in seven years, reflecting uncertainty in the business-computing market and slowing demand amid the U.S.-China trade battle,” Asa Fitch reports for The Wall Street Journal. “Chief Executive Bob Swan said Intel has become more cautious about the outlook for this year, although it expects market conditions to improve in the second half.”
“Mr. Swan this month decided to jettison a business of making modem chips for 5G smartphones that analysts say hadn’t been performing well. The move came after its main modem-chip customer, Apple Inc., settled a long-running legal dispute with Qualcomm Inc., paving the way for Qualcomm to start supplying chips for iPhones again,” Fitch reports. “In the interview Thursday, Mr. Swan said it was a direct result of the settlement between its customer and its rival. ‘In light of the announcement of Apple and Qualcomm, we assessed the prospects for us to make money while delivering this technology for smartphones and concluded at the time that we just didn’t see a path,’ Mr. Swan said.”
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MacDailyNews Take: Intel’s floundering continues unabated.
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