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Intel kills Consumer Electronics
bribecka writes "Saw this on CNet News.com: Intel has decided to phase out its consumer electronics division. This division was responsible for digital cameras, digital audio players, and other gadgets. " Not really surprising considering the way things are these days.
And place them in the tree. Swing them if you wish.
I rivited my nutbag to a steel I-beam.
It's a low margin business anyway. They never should of got into that business.
Unless you consider the Pentium class of processors "consumer grade".
What am I don't to do with my Intel microscope?
REDMOND, Wash. -- Oct. 18, 2001 -- Microsoft Corp. today announced revenue of $6.13 billion for the quarter ended Sept. 30, 2001, a 6 percent increase over the $5.77 billion reported in the prior year. Operating income totaled $2.90 billion compared to $2.78 billion in the prior year. Net income for the quarter was $1.28 billion including a $1.24 billion after-tax charge related to the impairment of certain publicly traded and private equity securities, predominantly in the cable and telecommunications industries. This charge is reflected in the $980 million investment loss reported this quarter. Diluted earnings per share for the September 2001 quarter were $0.23, including a $0.20 charge for net recognized investment losses which includes the impairment charge noted above. .NET Enterprise Server families, and our cost-control efforts," said John Connors, chief financial officer at Microsoft. "While we are looking forward to the upcoming launches of Windows XP, XboxTM and MSN® 7, we also recognize that this is a period of unprecedented global uncertainty that could have an impact on the economy and our business."
.NET Enterprise Server lineup," said Brian Valentine, senior vice president for the Windows division at Microsoft. "These results demonstrate our customers' enthusiasm for the quality, value and performance offered in our enterprise-ready products and solutions."
.NET Enterprise Server family of products also turned in an outstanding quarter with growth exceeding 30 percent, led by the continuing strength of SQL Server 2000 and Exchange 2000 Server. During the quarter, SQL Server 2000 was named Best Overall Database in this year's VARBusiness Annual Report Card and was deployed by customers such as Pennzoil, Nestlé and Marathon Oil. Exchange Server is the market-leading messaging and collaboration product and boasts over 94 million users. During the quarter, Microsoft also launched Content Management Server 2001, which enables companies to quickly and efficiently build, deploy and maintain highly dynamic Internet, intranet and extranet web sites.
"We reported solid revenue and operating results this quarter, fueled by strong customer demand for our Windows® 2000 and
The Windows 2000 Server family had a stellar quarter, with sales growth of over 20 percent. "We were especially thrilled to see strong customer demand for Windows 2000 Advanced Server, which sold twice as many units as it did the previous year. These products are a rock-solid foundation for the entire
The
Microsoft is set to deliver two highly anticipated products to customers during the coming quarter. On Oct. 25, Microsoft will launch Windows XP at events to be held in New York City and more than 60 other cities. Windows XP extends the personal computing experience by uniting PCs, devices and services, and brings the solid foundation of Windows 2000 to home PC users, enhancing reliability, security and performance.
On Nov. 15, Microsoft will launch Xbox, the future-generation video game system. The combination of Xbox's superior graphics performance and an extensive lineup of game titles from Microsoft and leading game-developers, such as Sega, Electronic Arts, THQ, Tecmo, Infogames, Activision, Konami and LucasArts, will deliver a revolutionary experience to gamers this holiday season.
Business Outlook
Management offers the following guidance for the quarter ending Dec. 31, 2001:
Revenue is expected to be in the range of $7.1 billion and $7.3 billion.
Operating income is expected to be in the range of $2.9 and $3.0 billion.
Diluted earnings per share is expected to be $0.49 or $0.50.
Management offers the following guidance for the full fiscal year ending June 30, 2002:
Revenue is expected to be in the range of $28.4 billion and $29.1 billion.
Operating income is expected to be in the range of $12.0 and $12.4 billion.
Diluted earnings per share is expected to be in the range of $1.61 to $1.66.
Webcast Details
Microsoft will hold an audio webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today with John Connors to discuss additional details regarding the company's performance for the quarter and other forward-looking information. The session may be accessed at http://www.microsoft.com/msft/. The webcast will be available for replay through the close of business on Friday, Oct. 26, 2001.
Forward-Looking Statements
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as: entry into markets with vigorous competition, market acceptance of new products and services, adoption of new licensing programs, continued acceptance of existing products and services, delays in product development and related product release schedules, reliance on sole source suppliers, or shortages of key components for hardware products that delay product delivery, any of which may cause revenues and income to fall short of anticipated levels; the risk of obsolete inventory or product returns by distributors, resellers and retailers; the risk of warranty and other claims on hardware products; higher relative marketing expenses associated with new product releases; changes in the rate of PC shipments; technological shifts; customer demand for our product and services; the support of third party software developers for new or existing platforms; competitive products, services and pricing; changes in product and service mix; product life cycles; sale terms and conditions; the company's ability to efficiently integrate acquired businesses; implementation of cost structures that align with revenue growth; the financial condition of vendors, resellers and retailers; unavailability of insurance; or uninsured losses (including the effects of the terrorist attacks on the United States on Sept. 11, 2001); adverse results in litigation; the effects of terrorist activity and armed conflict such as disruptions in general economic activity and changes in our operations and security arrangements; general economic conditions that affect demand for computer hardware or software; currency fluctuations; and financial market volatility affecting the value of our investments that may result in a reduction in carrying value and recognition of losses.
For further information regarding risks and uncertainties associated with Microsoft's business, please refer to the "Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Risk Factors" sections of Microsoft's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft's investor relations department at 1-800-285-7772 or Microsoft's investor relations website at http://www.microsoft.com/msft.
All information in this release is as of Oct. 18, 2001. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software -- any time, any place and on any device.
#########
Microsoft, Windows, Xbox and MSN are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.
The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft's corporate information pages. Shareholder and financial information as well as today's 2:30 p.m. PDT conference call with investors and analysts is available at http://www.microsoft.com/msft/.
Last updated October 18, 2001
© 2001 Microsoft Corporation. All rights reserved. Terms of Use.
suck my nut sack
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I thought the only reason Intel was even in that business was to promote "their" USB technology. The microscope, the webcam, keyboard and mouse, joysticks...They were all USB devices, and Intel pushed them forth as some of the coolest things available on USB. Unfortunately, Intel has yet to learn that fads don't sell products long-term, hence the "failure to meet long-term growth potential". Well, duh! What'd you expect from selling a fad product?
"Mod, mod, mod...and another troll bites the dust."
to concentrate on VIA cloning their chips.
I can imagine the commercials now... someone injects some blue blood into a test tube, and comes out with a warped and deformed Blue Man.
Then, as the scientist shoots the miserable spawn, a caption appears:
"Intel P4: Accept No Substitutes."
Goat sex free since 2001
One thing I like about the industry is the diversity of it all. You can walk in a store and be able to choose the product that better suits your needs. With Intel out of the (digital) picture (pun semi-intended), this might create doubt in the smaller manufacturers out there and make a few more drop out of the running. Worst case scenario, it might create a monopoly, at least, in the consumer electronics venue.
Which company am I going to turn to to get my hemmorhoid ring shaped, iMac blue, wireless game pads? (http://www.intel.com/wireless_series/gamepad.htm)
Oh the humanity...
"Music, Pictures, Video
Intel Takes Technology Beyond the Processor"
Didn't their non-MP3 MP3 player use Microsoft DRM? No wonder it went overlike a lead balloon! Serves 'em right.
sulli
RTFJ.
it would have been helpful to add the word "department" at the end of the headline. Saying "Intel kills Consumer Electornics" might freak some people out.
Got Freedom?
Thinking?
Dear Intel,
Please release the specs and documentation associated with the products you've discontinued. For example, the Intel Pocket PC Camera, along with your other webcams.
Thank you.
complex
If you noticed, every Intel "consumer" product was designed to work with a PC, the faster the processor the better. Basically, their consumer products were designed to drive more PC (and hence, Pentium) sales. Just another way to extend your marketing reach...
Intel is sitting pretty right now (relatively speaking, considering the state of the industry), and also PCs have already reached saturation as well. So they probably don't need "more" -- considering that consumer electronics is so far removed from Intel's core competencies anyways.
YES
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Yahoo!
Head's up /.
The title of this story is "Intel kills Consumer Electronics"
There is a magazine called Consumer Electronics, who may not be too happy about that title. I actually thought that Intel somehow did the magazine in.
I highly advise that the title be changed to something like "Intel Kills Consumer Electronics Division".
I'm truly relieved to know that not all companies can get into a market and dominate it thoroughly like microsoft. I'm very glad that intel doesn't have this power, despite the fact that they are rich.
It's also a shame though, when the peripheral market shrinks a little bit.
It's been a long time.
It made sense for Intel to get out of consumer electronics.
Declining global economy - Electronics are "luxury items" and therefore are cut first from consumers' budgets.
Less name recognition - Intel is widely recognized as a leading chipmaker. But for audio players PDA's and such, most people weren't aware, or simply went for bigger names like Rio or Palm.
Also note they are closing their Online Services Division, as well.
This will be best for the company. Focus on what it does best.
Example: How many consumers really want an MP3 player in thier home entertainment system? We love it (and spend lots of time talking about the best way to do it), but does the average consumer?
I think this may be a trend. Geeks think of cool things, and start doing them. Someone in marketing says "Hey, look what the engeneers are putting together for themselves... if they want it and can do it... maybe we can market it!" A few months later geeks are interested... but marketing is looking at consumers not geeks... and projects get abandoned.
I mean, think about it, when's the last time you saw an add for a portable mp3 player on TV. I've just recently heard a few radio adds for car stereo with mp3 support... but nothing like the Rout 66 project.
If I can't see it in Lynx I'm not interested.
This is a good move for Intel considering I've never even heard of an intel digital camera, and as I'm semi "wired" I would assume that means that the majority of people haven't heard of them either. Intel should stick to what they're good at: being second to PPC.
~ now you know
Biatch!!
In a sweeping move today, Intel Corporation has decided to boost revenue during the current looming recession by making drastic changes to the chip market.
It plans on killing off the consumer base.
"Consumers are starting to get smart," tertiary chief marketing analyst Joe Nooty said, "They are realizing that they don't actually need to upgrade from a 866MHz Pentium III to a 2.0GHz Pentium 4 to have a good Internet experience."
"We don't appreciate how our clients becoming unemployed and unable to think about buying our absolute latest product," said another marketing person, "It's time to give them the axe and redefine the market."
Execution of human beings, except for those employed by Intel, will commence in Q1 2002. The new Pentium 5 (or Pentium Pentium, codenamed Pentium Squared) will debut and will offer a fish-friendly interface.
"The reason for the fish-interface is simple. The world is 75% covered by water. We'll make a killing in sales by targetting the largest body of species in the world," claimed Nooty.
Intel representatives refused to answer our calls when we asked sent in questions such as: How do you plan to make "money" off of fish? Where will all these human consumers be burried? What will Intel do as a lone-standing human civilization? And did you ask Microsoft how they plan to port Windows XP (for eXPired) for oceanic fauna?
Here is an another example of bad business ethics. Intel never stopped to think about all the workers that would lose their jobs. Intel never thought about what this would do to our suffering economy.
I say boycott Intell and buy AMD.
In my opinion, Intel was TERRIBLE at making and marketing consumer products. They would sell a product with important details still buggy.
For example, I bought an Intel computer video camera. There was software to record videos, but there was no way to compress them so that the videos could be sent by email.
There was software to record audio, but there was no way to pause the recording. Each period of recording had to be a separate file.
Intel sold a PCMCIA network adapter that didn't work with Sony laptops. There was a piece of paper in the box that said to visit a particular web site. The site said that the adapter did not work with laptops using a particular chipset. The main site for the product did not mention this, however, and there was no link between the two..
U.S. government corruption: What should be the Response to Violence?
Bush's education improvements were
JonKatz homosexuality is dying
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JonKatz's homosexuality is dying
When the economy picks up in a few months, Intel will spend a bunch of money re-opening its Consumer Electronics Division. So will all the other megacorps who are having a contest to see who can lay off the most employees, shut down the most divisions, and finish the year in the black. I think people ("consumers" in business parlance) are just a little scared about spending money right now and are delaying purchases--rather than becoming introspective about overconsumption and all the other things that make America the Great Satan. When everybody feels a little safer again, the money will start rolling up the pyramid into the vaults of the upper caste yet again. Besides, the holiday shopping season is almost here.
While I was whoring for my undergrad business degree, I remember my profs always speaking of the risks of doing business, etc... I'm beginning to think that only applies to sole proprietors. Historically, corporate owners were only liable to the extent of their investment. With the $100,000,000,000+ US that Bush is trying to give to the megacorps, how can any of them still believe they will lose money this year?
"What is the sound of one belly slapping?"
I'm just sort of glad Motorola hasn't decided to ditch their much more popular 680x0 breed of processors, which can be found in everything from your phone to your PDA to your older computers. Intel leaving the industry just means there's more money to be made if you're one of the "other", higher quality chipmakers.
"Look at me, I invented the stove!" -- Ben Franklin
It's only 2:00 here, bastard.
"The question of whether a computer can think is no more interesting than that of whether a submarine can swim" -EWD
I guess a beowulf cluster of these wouldn't be very useful.
"Honey, the stereo died again, we can't seem to keep anything working around here anymore..."
Fade in scary music. Pan to Fentium, the little chipster busying reading BOFH. clickety-click.
Pan to vacuum cleaner. See the new mexican jumping bean robots disappearing up the tube. Pan to the TV set, where the volume is at full, on channel 3.5, with Barney singing a duo with HAL.
-- Another senseless waste of fine bytes.
Anyone know if this will be discontinued too? I believe they acquired it when they acquired Xircom.
JOhn
Campaign for Liberty
It played just about everything. All the reviews I read pretty much put the Pocket Concert as the best memory based MP3 player out there. Lame name, boring package, but works like a charm (I like mine).
...for Apple, who is releasing some mystery device next week and getting back into the consumer hardware business. Hopefully it won't go the way of the Newton or Pippin...
most of thier stuff was overpriced and crap. if they did this about a year or two ago, when the market was fresh(or kind of fresh), we'd probably using Intel toasters with digital cameras to show you the level of toasting the bread's at
Non impediti ratione cogitationus.
it came from an outsource vendor in the first place :)
The Intel play microscope goes up to 200x magnification... problem is, it has a cheap ass web-cam type video capture device...
However, my nieces and nephews have easily gotten my money's worth of play out of this item, and it has spark more than enough questions/curiosity.
While it is a low-fi item, with crap software, I would have to say that I have enjoyed owning it.
Ever looked at the writing on an M&M? My nieces & nephews have... and it made them relieze many things...
Ok, I know one of the things plaguing OSS is the lack of diversity...
What about starting a fund of some sort that could buy off (relatively) cheap sell offs of this sorts?
I know there just have to be some geeks out there with money to burn!
Seriously.
Disney Kills Consumer Electronics?
Wait a minute. That is the next story...
"Trademarks are the heraldry of the new feudalism."
"Dot.Station, a countertop terminal powered by Red Hat Linux that lets people surf the Web, exchange emails and make phone calls." is one of them.
It should be noted, that the hanhelds and the PC devices market is one that linux has a strong foothold in and surpasses any other OS.
One could fear that witht he eclipse of these, the linux popularity could be crumbling very, very fast.
I surely hope that wouldn't happen too fast and too much, but facts are out there, unfortunately...
I bought an intel usb webcam that just wont damn work with linux.
patrick.best@telus.com
This is just about as plausible as Intel's original plans to make Rambus their standard memory type across their whole line of CPU's.
Do you remember when Rambus was supposed to take 90% of the DRAM market?
There is nothing like a recession to bring the focus back to reality!