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Saturday, October 09, 2004Intel CEO wants an employee attitude check and everything wrong at Intel have been widely reported in the past few weeks. Intel besides internal problems, is feeling the heat from energized, faster-growing rivals -especially Samsung,Advanced Micro Devices , and Texas Instruments,who are getting bolder and,in many cases, growing faster than the world's biggest chipmaker.Intel's sales growth has slowed in recent quarters.Margins may be slipping, too. Part of what's hurting Intel is changes in tech buying patterns, analysts say. Many find that even a cheap processor can run 99.9% of their applications but costs hundreds of dollars less.Plus, Web-based applications, which require little power on the desktop itself to process information,are proliferating. That's already affecting Intel's average selling prices.Intel is looking to goose its growth rate by wading further into markets other than its bread-and-butter chips for PCs. Among them are consumer electronics and mobile phones.
As Om Malik has pointed out earlier,Intel's telecom adventures have cost about $10 billion in write-offs! Canceling an entire processor roadmap? Almost all of the major new products within the Intel Architecture business unit during 2004 have been late or flawed in some respect. A recap of what has gone wrong, and what it means for the most dominant chip company on the planet!
-Delays and a recall of the desktop Grantsdale chipset
-The delayed launch of Dothan
-Substantial delay for the Alviso mobile chipset
-Ongoing overproduction of slower Prescott processors
-Flaw in the Lindenhurst server chipset
-The delay of the 4GHz Prescott until 1Q05
Will the artifacts buried there represent just another chapter in this chip legend's history -- or a key turning point, when Intel's long-term dominance had started to wane?
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