HP, Intel, IBM Spend Too Much, Innovate Too Little - Today's Outrage

Similarly, Intel's purchase of Infineon's wireless-chip business reveals how long it took the chipmaker to recognize the trend toward mobile devices that would drive demand for chips. I don't even know what to say about Intel's McAfee purchase other than it suggests that Intel isn't very confident in its future as just a chipmaker, so now it's getting into the software business too. Don Reisinger makes the point that McAfee may provide Intel with a side door into the mobile market using the security corridor to finally get in.

Even Google (GOOG), once a powerful symbol of innovation, appears to have lost its way, judging by Google's acquisition spree in the social media sector.

It's all very sad. Investors should not be encouraged by these acquisitions across the tech industry, rather they should be worried about whether the buyers still know how to create new products on their own.

--Written by Glenn Hall in New York.

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