Intel layoffs: More seismic changes to come

[Onkel Neal]

PC sales continue their downward trend

Remember the days when PCs were obsolete in a year and you actually needed newer hardware to run programs? I guess for most people, the lifespan of a PC has grown to 5+ years.

http://www.oregonlive.com/silicon-fo...ismic_cha.html

The 12,000 layoffs Intel announced Tuesday are only the beginning of the chipmaker's monumental overhaul.

Intel is preparing to close several of its sites, kill some of its products, and appears to be setting up a two-man contest to succeed chief executive Brian Krzanich as the company transforms itself for the post-PC era.

"Intel's been very, very slow to change," said Jim McGregor, an industry analyst in Arizona who follows the company for Tirias Research. "Now it's catching up with them and it's going to be painful."

Intel faces uphill battle with PC sales down 10%
http://www.usatoday.com/story/tech/n...n-10/83209940/

“PC shipments dropped below 65 million units for first time since 2007,” said Mark Hung, Gartner’s Intel analyst.

The decline will have a definite impact on Intel’s Q1 earnings, say analysts. But Intel's also been lowering expectations, said Van Hees.