From stockholders point of view, this is still just a big glitch that is possible to fix and recover.
Intel total revenue grew 14.9% in 20182Q, competition grew 18.08% in the same quarter, so Intel is slowly losing ground and there is potential for trouble. The real competitive moat is Intel's profit margin relative to the competition. Intel has been undisputed king in the profit margins and still continues to be. 60% Gross margin (20% above TSMC).
Intel has been beaten technologically before. AMD did it years ago. Intel responded by lowering prices, and removing profits from AMD's technological triumph. When AMD was financially in the ropes, Intel increased its profit margins again.
As long as Intel maintains 10-15% margin over competition it can cut into margins and compete with low price. Only after Intel loses the margins it will become just another chip maker.
Intel total revenue grew 14.9% in 20182Q, competition grew 18.08% in the same quarter, so Intel is slowly losing ground and there is potential for trouble. The real competitive moat is Intel's profit margin relative to the competition. Intel has been undisputed king in the profit margins and still continues to be. 60% Gross margin (20% above TSMC).
Intel has been beaten technologically before. AMD did it years ago. Intel responded by lowering prices, and removing profits from AMD's technological triumph. When AMD was financially in the ropes, Intel increased its profit margins again.
As long as Intel maintains 10-15% margin over competition it can cut into margins and compete with low price. Only after Intel loses the margins it will become just another chip maker.