Intel CEO Says Gross Margins Will Be 'Down a Little Bit' in 2019

The transcript discusses Intel's market performance, highlighting a better-than-expected quarter despite challenges in China and a digestion phase in the chip cycle. Intel anticipates inventory depletion and increased orders in the second half of the year. The transition to 10 nanometer technology impacts gross margins but is seen as a positive step. Intel's market share is stable, with competition from AMD. The company is expanding capacity to meet growing demand and address execution challenges.

What is the company's expectation for the second half of the year regarding customer orders?

• Orders will decrease significantly.

• Orders will remain the same as the first half.

• Orders will pick up as inventory depletes.

• Orders will be unpredictable.

Why is the company's gross margin expected to be lower this year?

• Owing to higher operational costs.

• As a result of declining sales in China.

• Because of a transition to new node technology.

• Due to increased competition from AMD.

What is the company's market share in the silicon TAM?

• 10-15%

• 20-22%

• 23-25%

• 30-35%

How does the company plan to counter competition from AMD?

• By acquiring smaller competitors.

• By focusing on building the best high-performance technology.

• By reducing prices significantly.

• By increasing marketing efforts.

What is the company's strategy to handle the one-time jolt from cloud service providers?

• To increase marketing efforts.

• To diversify into new markets.

• To focus on high-performance technology for data centers.

• To reduce production costs.

What steps is the company taking to ensure it is not a constraint on customer growth?

• Diversifying into new markets.

• Reducing production costs.

• Expanding manufacturing capacity in multiple locations.

• Increasing marketing efforts.

Where is the company expanding its manufacturing capacity?

• In Europe and South America.

• In the US, Israel, and Ireland.

• Only in the US.

• In China and India.