Profits: Apple and Intel Going Opposite Directions

Lynne Kiesling

Earlier this week Apple announced its quarterly profits for Q2; profits increased by 48 percent. Unexpectedly continued strong iPod sales combined with a 61 percent increase in sales of laptop computers. What the WaPo article doesn’t say, but I saw in other places, is that the power and operating system flexibility of the Intel dual core chip laptops fueled that 61 percent increase.

Sadly for Intel, though, their profits fell 57 percent relative to the same quarter last year. One reason for that is the competition with AMD in the chip market that I mentioned a few weeks ago. The Red Herring article linked above focuses on the importance of sales and marketing strategies, not price competition, as the way they can find success. It’s not just the technical capability of your chip, it’s how you sell it. I think that’s important. Recall that I noticed the AMD ads in the airport, but have taken no notice of any Intel marketing that might be out there (even if I’m not the target market).

This is the perennial gale of creative destruction in action, and it’s fascinating to watch. Well, it’s fascinating to me!


One thought on “Profits: Apple and Intel Going Opposite Directions

  1. Intel is in a bad spot of their own making. The basic marketing of thier chips is in disarray. I’m a huge computer geek, and even I am confused about their processor lineup. I have no idea what differentiates a P4 561 from a 562 from a 551. Now they have a Core Duo and a Core 2. What’s up with that?

    AMD is a bit better with their lineup, it is a little more understandable. AMD has done well catering to the gaming community, and they have run rings around Intel in servers and workstations.

    Maybe this is all a reflection that we have come to the post-pc era? Do you need to ever buy a PC again?

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