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NAND Flash is hurting Intel margins
Backhttp://www.uberpulse.com/us/2008/03/intel_focuses_on_four_new_10_billion_markets_consumer_electronics_mobile_internet_devices_low_cost_pcs_embedded.php NAND Flash hurting Intel The first thing Intel CEO Paul Otellini spoke about weaknesses in the NAND market that forced the company to post a gross margins warning earlier this week. In a nutshell, the NAND market is on a slump: Intel sees a 53% drop in NAND flash pricing in Q1, far worse than the 27% previously forecasted. And this, after a 28% price erosion in the prior quarter. These price drops has affected both revenue and the value of inventory that has to be written off. And then came the big splash. "You have my personal commitment that this business will not be a drag on the company... we're going to fix it or make sure it's profitable... We entered the NAND business assuming we're going to make money", said Otellini. Meaning: if Intel can't make the NAND business work, it'll divest it like it did with its NOR Flash business, now called Numonyx and a joint-venture with ST Microelectronics. http://www.uberpulse.com/us/2008/03/intel_focuses_on_four_new_10_billion_markets_consumer_electronics_mobile_internet_devices_low_cost_pcs_embedded.php
Category: Tech
Uploaded: March 6th, 2008 @ 12:50 am
Author: uberpulse
Length: 04:19
Rating:
Views: 815
Tags: intel nand nor otellini uberpulse
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