>This increased revenue for this segment 4% overall to $8.5 billion. Intel cites strength in gaming, larger commercial, and modem for the growth.
Intel had additional Modem business from Apple, that is anywhere between 30- 40M additional unit compared to last yea ( Last year was a split between Qualcomm and Intel )r. Or ~600M Revenue. If you had taken this out, Intel would have had ~4-6% lower revenue on the Client Computing Segment.
Again, Modem business is taking away capacity from DataCenter and Client Computing. It would have been much better had Intel planned their capacity ( or 10nm ) better.
The strange thing is AMD managed growth while Intel not losing much. The market as a whole seems extremely healthy.
@ksec..."Intel had additional Modem business from Apple...."
True, but I think your way off on your ~$600M in revenue number. Last year Apple sold around 52M iphones during the January quarter and they were said to have split demand between Intel and QCOM. In this year's January quarter they are expected to have sold closer to 42M units. which would put the increase in units at about 16M units which would put the Q to Q modem revenue bump around $240M around around 1.5%.
Well, analysts are saying otherwise and expect desktop decreasing. Someone is lying... and we know who. Revenue are still the same because of shortages price premium.
Analysts prediction is definitely not as good as actual sales results. And it's been 4/5 years, upgrade cycles are going to start coming around now, especially since SSD wasn't really a thing a couple of years ago due to cost constraints.
Modems would be done on RF processes. Those are different enough from what's used for CPUs that they need separate production lines. They only compete against each other in terms of capital spending and floorspace in a fab; you can't just stop making modems and start running wafers for desktop/server CPUs down the same lines.
almost seems "odd" if you look at it, like "magically" a very large increase in % for many things, especially tech which has more or less been trending upwards and I know for the past 4 generations let alone since Ryzen is almost "odd" that new buyers of sorts come out of the wood works and/or it is because older equipment, new installations etc just happened all at once in burst over the past year and a 1/2 .. 2 odd years (from budget to gaming to enthusiast to ultra high end if you have to ask you cant afford it work grade)
Interesting to say the least especially what may or may not transpire 2019-2021 is going to be a massive landscape shift from everyone, including governments and so forth, hell at the way things are going many of us simply will not be in a financial state to think of anything but survival (the times look very harsh outlook)
You can't call gains, the lower volumes. For shareholders increased revenue can be seen as gains, but for everyone else, lower numbers of processors do not translate into gains. Add to that the lower profit margin and things look even less as "gains".
10nm for low end mobile processors? This is old news. They just try to say the same story from a different perspective. Wake me up when they can make desktop, high wattage, many cores CPUs at 10nm or 7nm.
Media reports published today that Intel is ending work on the 10nm process are untrue. We are making good progress on 10nm. Yields are improving consistent with the timeline we shared during our last earnings report.
— Intel News (@intelnews) October 22, 2018
Intel managed communication with shareholders. They didn't canceled 10nm, but this process is not going to replace 14nm. They mislead the shareholders for not making the stock drop.
I will believe 10nm is going to be real when they release the first Xeon on 10nm.
TL;DR he concluded it was dead in October after learning that of the 4 planned 10nm fabs 1 was being turned into a 14nm fab, 2 were getting 7nm levels of EUV tools, and there was total silence on the 4th. He assumed that meant 10nm was completely dead; but subsequently found out the 4th was staying at 10nm. OTOH the 75% reduction in planned fab capacity means Intel won't be making a lot of 10nm anytime soon. This is in agreement with the recently leaked roadmap showing 14nm continuing for a few more years in most product segments.
Intel down 12% in two days now - shows the effect of the leaked slides, the complete admission that 10nm is going to be limited to low volume mobile processors because of performance issues and not having many 10nm fabs after refactoring them to 14nm and 7nm.
"Internet of Things continued its growth, with revenue up 8% to $910 million. What was once a blip on the radar is almost a billion dollar per quarter market for Intel. "
But that's extremely misleading, isn't it? For Intel IoT is effectively cloud services, no? How much of the IoT revenue actually comes from the sale of hardware (or SW) that goes into the IoT devices, as opposed to data warehouse backend stuff that aggregates and processes IoT data?
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18 Comments
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Arbie - Thursday, April 25, 2019 - link
Wait til that 10 nm goodness hits the desktop next generation. Next human generation, that is.Sivar - Friday, April 26, 2019 - link
A bit optimisticSychonut - Friday, April 26, 2019 - link
Looking forward to 14+++++++.PeachNCream - Friday, April 26, 2019 - link
As long as they keep paying dividends on their shares, I do not care how many times they zap 14nm with the paddles to keep it alive.ksec - Friday, April 26, 2019 - link
>This increased revenue for this segment 4% overall to $8.5 billion. Intel cites strength in gaming, larger commercial, and modem for the growth.Intel had additional Modem business from Apple, that is anywhere between 30- 40M additional unit compared to last yea ( Last year was a split between Qualcomm and Intel )r. Or ~600M Revenue. If you had taken this out, Intel would have had ~4-6% lower revenue on the Client Computing Segment.
Again, Modem business is taking away capacity from DataCenter and Client Computing. It would have been much better had Intel planned their capacity ( or 10nm ) better.
The strange thing is AMD managed growth while Intel not losing much. The market as a whole seems extremely healthy.
ilt24 - Friday, April 26, 2019 - link
@ksec..."Intel had additional Modem business from Apple...."True, but I think your way off on your ~$600M in revenue number. Last year Apple sold around 52M iphones during the January quarter and they were said to have split demand between Intel and QCOM. In this year's January quarter they are expected to have sold closer to 42M units. which would put the increase in units at about 16M units which would put the Q to Q modem revenue bump around $240M around around 1.5%.
ksec - Friday, April 26, 2019 - link
Yes. Sorry I was thinking of Apple's Q1, and this is Intel's Q1 but Apple's Q2. Yes. The number should be much smaller.eva02langley - Friday, April 26, 2019 - link
Well, analysts are saying otherwise and expect desktop decreasing. Someone is lying... and we know who. Revenue are still the same because of shortages price premium.RSAUser - Wednesday, May 1, 2019 - link
Analysts prediction is definitely not as good as actual sales results.And it's been 4/5 years, upgrade cycles are going to start coming around now, especially since SSD wasn't really a thing a couple of years ago due to cost constraints.
DanNeely - Friday, April 26, 2019 - link
Modems would be done on RF processes. Those are different enough from what's used for CPUs that they need separate production lines. They only compete against each other in terms of capital spending and floorspace in a fab; you can't just stop making modems and start running wafers for desktop/server CPUs down the same lines.Dragonstongue - Friday, April 26, 2019 - link
almost seems "odd" if you look at it, like "magically" a very large increase in % for many things, especially tech which has more or less been trending upwards and I know for the past 4 generations let alone since Ryzen is almost "odd" that new buyers of sorts come out of the wood works and/or it is because older equipment, new installations etc just happened all at once in burst over the past year and a 1/2 .. 2 odd years (from budget to gaming to enthusiast to ultra high end if you have to ask you cant afford it work grade)Interesting to say the least especially what may or may not transpire 2019-2021 is going to be a massive landscape shift from everyone, including governments and so forth, hell at the way things are going many of us simply will not be in a financial state to think of anything but survival (the times look very harsh outlook)
anyways
^.^
yannigr2 - Friday, April 26, 2019 - link
You can't call gains, the lower volumes. For shareholders increased revenue can be seen as gains, but for everyone else, lower numbers of processors do not translate into gains. Add to that the lower profit margin and things look even less as "gains".10nm for low end mobile processors? This is old news. They just try to say the same story from a different perspective. Wake me up when they can make desktop, high wattage, many cores CPUs at 10nm or 7nm.
outsideloop - Friday, April 26, 2019 - link
Realistically, 10nm is dead at this point:https://www.digitaltrends.com/computing/intel-10nm...
And Charlie called it last year:
https://semiaccurate.com/2018/10/22/intel-kills-of...
And IMO, this revenue adjustment down will be AMD's revenue adjustment up in four days.
eva02langley - Friday, April 26, 2019 - link
That article is sooo good... and this is what we get after from Intel.https://arstechnica.com/gadgets/2018/10/report-int...
Media reports published today that Intel is ending work on the 10nm process are untrue. We are making good progress on 10nm. Yields are improving consistent with the timeline we shared during our last earnings report.
— Intel News (@intelnews) October 22, 2018
Intel managed communication with shareholders. They didn't canceled 10nm, but this process is not going to replace 14nm. They mislead the shareholders for not making the stock drop.
I will believe 10nm is going to be real when they release the first Xeon on 10nm.
DanNeely - Friday, April 26, 2019 - link
Charlie updated his killed conclusion in January.TL;DR he concluded it was dead in October after learning that of the 4 planned 10nm fabs 1 was being turned into a 14nm fab, 2 were getting 7nm levels of EUV tools, and there was total silence on the 4th. He assumed that meant 10nm was completely dead; but subsequently found out the 4th was staying at 10nm. OTOH the 75% reduction in planned fab capacity means Intel won't be making a lot of 10nm anytime soon. This is in agreement with the recently leaked roadmap showing 14nm continuing for a few more years in most product segments.
https://www.semiaccurate.com/2019/01/25/why-semiac...
psychobriggsy - Friday, April 26, 2019 - link
Intel down 12% in two days now - shows the effect of the leaked slides, the complete admission that 10nm is going to be limited to low volume mobile processors because of performance issues and not having many 10nm fabs after refactoring them to 14nm and 7nm.name99 - Friday, April 26, 2019 - link
"Internet of Things continued its growth, with revenue up 8% to $910 million. What was once a blip on the radar is almost a billion dollar per quarter market for Intel. "But that's extremely misleading, isn't it? For Intel IoT is effectively cloud services, no?
How much of the IoT revenue actually comes from the sale of hardware (or SW) that goes into the IoT devices, as opposed to data warehouse backend stuff that aggregates and processes IoT data?
ballsystemlord - Saturday, April 27, 2019 - link
Have we discerned yet (Ian's review[1]) if 10nm is a more preformant and/or power efficient node or worse?[1]: https://www.anandtech.com/show/13405/intel-10nm-ca...