John Paczkowski

Recent Posts by John Paczkowski

Intel: Don't Call It a Comeback


Three months after Intel CEO Paul Otellini announced that the PC market had reached bottom, the company’s latest financials, which handily beat expectations, seem to have proven him right. “The worst is now behind us,” he said. And the tech economy is showing signs of muted recovery.

The question is: Is that recovery sustainable?

The answer, according to Otellini, is yes. “The second quarter was clearly better than we expected,” he told analysts on a conference call. “Customers signaled increased confidence in their ordering patterns.” After months of global recession, Otellini noted that the company’s second-quarter results “reflect improving conditions” in the PC market.

“Intel is seeing a firming up in demand,” he added. “It’s encouraging news for the industry.”

Indeed. Intel is a bellwether for the tech sector; as goes Intel, so goes the industry. So, if Intel says demand is beginning to return to normal seasonal patterns, then the industry may truly be stabilizing. That said, there’s still quite a bit of economic volatility–enough to suggest that it might be wise not to read too much into Intel’s performance.

Said analysts at JP Morgan: “Although the Intel quarter was clearly spectacular on all fronts, we continue to believe the upside was driven by inventory replenishment as we have not seen any evidence of increasing PC demand.”

Shares of Intel (INTC) are trading up 6.77 percent at $17.97 this morning.

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December 28, 2013 at 12:05 pm PT

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work