So those at intel think no more layoffs after ACT1, if so why?
X86 volume hasn't stopped falling which means lower volume, scale, and profits.
Commodity efforts in IoT, automotive, modems and memory are all lower margins and intel can't compensate them with client or severs. No amount of lumping x86 here can change the fundamentals of a highly competitive commodity space, unlike x86 or servers.
More expensive x86 products are coming on 14nm, Kaby and Coffee and are uncompelling and big die and cost more to make. What's more 14nm yields aren't that great either to compensate even now.
10nm isn't here, not even close with magical scaling and cost reduction yet. What is worse it has big issues which means low output and high cost when it comes so years before real money is made on it!
BK and Stacy what are their options to keep margins? Can't stop 10nm that Titanic already sailed! Can't stop growth initiatives no matter how flawed they are in busting margins. He claims they will ignite growth, BK is wrong but he can't stop or stock will plunge.
NO, only option in 2017 and 2018 is the recipe of Blackberry, Kodak and others, LAYOFFS, more ACTs to come, get ready!