This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
“In the second quarter, we will launch Haswell, enabling a new wave of ultra-sleek designs across multiple form factors by our customers. We believe the combination of an improving macroeconomic environment, Haswell coming to the market; ultramobile form factors like ultrabooks, convertibles, and tablets; and touch-enabled devices leads to a return to growth in the second half of the year.”
“We are taking advantage of the excess capacity on older generation process technologies to take capacity offline and reuse more equipment and space for 14 nanometer and beyond. The results of these actions allow us to lower our capital spending forecast for the year by $1 billion, down to $12 billion.”[on the foundry business] “We’re in the mode of collecting serious customers. …there are some other customers that we still have not yet publicly announced…it will not have a significant revenue impact to the company for two to three years. That’s the design cycle for these products…think of that as something that will start two-plus years from now and run for quite a number of years thereafter on several generations of technology.”
“traditional PC segment of the market, we do expect that to be down. We expect netbooks to be down significantly….that category is coming to the end of its life.”
“ultramobile devices, so things like ultrabooks, detachables, convertibles. We’re seeing robust growth there. ”[ground rules for foundry business] “One would be value-based pricing, to take advantage of our technology. The second is that we would not enable a chip competitor. And the third…form a strategic relationship with a customer so that it went beyond just a single foundry transaction.”
“There is an adoption curve [for windows 8], and once you get over that adoption curve, I don’t think you go back…I think people are attracted to touch, and the touch price points today are still fairly high, and they’re coming down very rapidly over the next couple of quarters.”
“because of Bay Trail coming into the marketplace, you’ll see touch-enabled thin notebooks with really good performance that are hitting kind of $300 price points.”
“So we’ll be participating across a broad range of compute devices as we get into the back half of this year.”
“the most important thing for us is to make that transition to 14 and continue to have the leading edge.”
“the ability to miniaturize and bring things into extremely thin form factors is as revolutionary as the amount of changes I’ve seen in my time in this industry.”
“The set top box spending, or the stuff we’re doing in Intel media, in the grand scheme of things, is not a lot of spending. So the real issue is inside of our core microprocessor and platform development, and we’re at the point now where roughly half of our spending is focused on system on chip, inside the microprocessor world.
And the system on chip environment is really a lot of the ultramobile products. It’s the phones, it’s the tablets. It’s embedded systems. It’s automotive, etc. Where we have fairly strong growth opportunities.”
“There’s a market for ultrabooks, and it’s a sizable market. I mean, if you look at Gartner data, it’s growing robustly. But there’s this reinvention going on just broadly across the notebook. And we’re seeing now the percent of thin and light notebooks relative to the total notebook market that are kind of on the order of a third of the market. And I think that grows from here as we hit price points.”