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Analyst: Intel using HDD crisis to mask other problems

Posted on Thursday, December 15 2011 @ 21:24:48 CET by

Nomura Equity Research believes Intel's $1 billion downward revision of its fourth quarter revenue projection is about more than just a shortage of hard disk drives:
In a note to clients entitled: Intel finally blows up and subtitled: Change in outlook may highlight issues beyond HDDs, Nomura said that problems at Intel are based on a wider set of challenges. "HDD shortages are a concern, but we think weak sell-through is also contributing to the $1 billion shortfall. We see softness in China, continued demand for ARM-based more power-efficient devices, and low volumes for ultrabooks," the note said.

In other words demand for PCs and ultrabooks is weak, but demand for ARM-based processors to go in smartphones and tablet computers is high. The ultrabook is Intel's favored form factor that it hopes will take market share from tablet computers just as tablet computers have taken market share from the notebook computer and killed the netbook at birth.
Source: EE Times



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