company used to be very focused on product gross margins... it was in the50s/60s for a long time. Now it is well below 40%.
For the first time in decades, Intel has to worry about investing cash flows and SG&A... TBH, Intel isn't very good at running efficiently.
Is it a surprise that Intel is having such difficulty and generating such staggering quarterly losses... look at headcount. So far only about 10,000 have been cut. At a minimum the company needs to lose another 20,000 - 30,000 heads.
Intel used to be very good at right sizing the headcount to the business cycle... now it is woefully too slow and the cash bleed is staggering. I am losing faith.