Why Intel’s Grantley Failed to Get a Mention in 2Q15
In its previous earnings release, Intel stated that approximately half of the 19% growth in its datacenter business was driven by Grantley.
IBM’s 7-nm chips have put significant pressure on Intel (INTC). However, owing to its investment in fabs for decades, Intel has a leading edge in manufacturing chips.
Increased competition will pump up the price pressure, translating to contraction in Intel’s margins.
Cannonlake, Intel’s first 10-nm product, is expected to launch in the second half of 2017.
On July 2, Intel announced that its president of 28 years, Renee James, is stepping down from her position.
When Microsoft (MSFT) first announced the launch of Windows 10 in late 2014, Intel expected chip sales would increase due to the upcoming release.
In its 2Q15 earnings release, Intel didn’t mention Grantley’s performance and its contribution to datacenter growth, even though it garnered the limelight in 1Q15 results.
In its 2Q15 earnings release, Intel (INTC) stated that the company has qualified its sixth generation core product, Skylake, for production.
IBM through OpenPower, which was launched in 2013, is licensing its patents to other technology companies globally.
IBM started licensing designs for semiconductor chips, servers, and software to Chinese tech firms in March 2015.
By joining hands, IBM, Samsung, and GlobalFoundries plan to gain a competitive edge over players like Intel.
With the development of 7-nm chips, IBM has surpassed Intel, which is still working on 10-nm chips.
On July 9, 2015, IBM launched the world’s smallest chip to date in collaboration with GlobalFoundries and Samsung (SSNLF).
During a conference call to announce its 2Q15 earnings, Google’s management mentioned that watch time on YouTube has grown by 60%.
The search advertising business remains Google’s (GOOG) most valuable business. Google dominates the US desktop search ad market with a share of 64%.
According to Google, the Google Play business continues to show strong growth, especially in emerging markets (EEM).
Google (GOOG) (GOOGL) credited its better-than-expected 2Q15 earnings results to faster growth in mobile advertising, YouTube, and its programmatic ad business.
The United States remains the growth market for Google (GOOG) in 2Q15. The revenue growth in the US market accelerated for Google in 2Q15.
Ad rates, Google’s (GOOG) cost-per-click (or CPC) metric, continue to decline. The pace of this decline has actually accelerated.
In addition to its users, Google is also striving hard to help advertisers provide better monetization opportunities on mobile devices.
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