Dell reaffirmed their guidance for the third quarter, but gave no guidance going forward. They also said that industry growth for the third quarter was going to be worse than expected.
More Quotes from Dan Niles:
In the past, Intel has had much higher performance products than AMD had, so they bombed prices on the low end, and kept pricing higher on the high end. This time, AMD's got as speedy processors as Intel does at the high end. There's nothing Intel can do.Dan Niles
I'm surprised it was this good, quite honestly. And more importantly the guidance for next year on the gross margin line of 57 percent. I think people are going to be very encouraged given that's up pretty substantially from what they did this last year.
Dan Niles
Slightly, to my mind, implies 3- to 5-percent growth. I think most people were looking at the 7- to 8-percent range for the fourth quarter.
Dan Niles
The problem is how long will it take for the fundamentals to stop getting worse, and we don't see that happening any time soon.
Dan Niles
It doesn't get a lot better than that, especially for a company that just hasn't been doing very well for the last year. It's going to be good for them tomorrow, and that should have a positive affect on a lot of the other chip makers, especially guys that are closely related. It will have generally a positive affect on the overall market.
Dan Niles
This is yet another data point that the general IT spending pickup continues to stretch out in time. We do not see a recovery till after the summer at the earliest and even then expect the recovery to be gradual.
Dan Niles
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