00:00 Speaker a
Intel's shares are rising with reports that the Trump administration is in talks to take stock in the company. This is because Intel is struggling to compete with the changing technological environment and faces increasing competition with technology giants like Nvidia. Joined Yahoo Finance Tech Editor Dan Howley. Dan, given everything that's going on at Intel this week, did we want to take a step back, look at Intel's history and figure out what went wrong? So, what are some of Intel's biggest mistakes over the past decades or decades?
00:44 Dan Howley
Yeah, unfortunately, Julian, all you know, let's take it from the most important ones basically. That means you can't win the mobile market. Well, there was a time when Intel had the opportunity to go ahead and start investing in smartphone chips. Well, it completely missed the boat on top of it. Well, at one point I had the opportunity to become Apple's chip maker for iPhone. Well, that's why I decided not to go. Apple took his arm. Well, they tried to get into their smartphones at one point, but they couldn't understand how to proceed with it. Well, the power and battery life were not good. It never really took off. So, um, they missed it. They also missed out just getting into the GPU and AI. They had the opportunity to get into this over the years. They incorporate graphics processing into their own chips, but the dedicated graphics card itself didn't actually fit in. Well, they've recently tried to go more recently under Pat Gelsinger. They still have some, but it will take a long time for them to catch up with Nvidia, AMD, and obviously they can't advance chip technology along with something like TSMC. They just missed out on these three big important areas. It's certainly a small thing, but in reality, it starts with missing out on mobile and then entering those GPUs, and the process technology isn't there. They are about to get to it, but it's not there yet.
03:23 Speaker a
Dan, I was looking at charts, various Intel charts, stock charts, revenue, net income, etc. Everything peaked and started falling in just the last three to five years.
03:49 Dan Howley
Yeah, I watch, it was a boon for them during the pandemic, right? But it was a one-off. So I hope it's a one-off thing. Well, the idea is, people went out and bought a computer because they didn't have a computer at home. They may have used them at work or had them from school. So they went out and bought a lot of PCs. And it helped Inter in an instant. They also ruined them moving forward due to all the progress they saw in revenue. But other companies have had to deal with it, and they've been straightening it ever since. Intel couldn't go back to the level to where people were saying. Well, I need a new computer now. You need to go ahead and get it. And looking at the main type of computing device of people today is smartphones. They don't spend much time on their laptops unless they're at school or in the office they're at home. You know, you're not sitting on the couch with your laptop. You are sitting on the sofa with your smartphone. So if people try to upgrade something first, it will be their phone, not their laptop. They hope to aim for more sales in October with Windows 10 and Microsoft Windows 10 ending life. We haven't seen anything like growth we saw in 2020.
