Mark Hibben, at Seeking Alpha, believes that Intel’s “mobile strategy is an abysmal failure and is reminiscent of Blackberry’s response to Apple’s iPhone”.
He also thinks that after he’s crunched through the earnings, the picture for Intel isn’t that bright, with operating income down by a quarter year on year, and revenue down 4.7 percent year on year.
“The EPS beat was an artifact of an abnormally low income tax provision for the quarter. Intel is no longer a growth story despite the representations of Intel management,” he said.
Intel was able to lower its provision for taxes to $277 million for the latest quarter, compared to $1.126 billion in the same quarter last year.
Hibben believes that the fall in operating income is down to its client computing group, with revenues down in both Intel’s first and second financial quarters.
Intel is still subsidising suppliers of tablet computers with its chips.
He concludes: “Intel has become a short opportunity. The ingredients are all there. A management out of touch with reality. A company that is shrinking rather than growing and doesn’t understand why. A base of investor/fans clinging to an image of Intel from its glory days. Intel has become the BlackBerry of semiconductors.”
TechEye believes Hibben is right…