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More Proof That Worldwide PC Sales Are Down: Intel Quarterly Results


Written by  Sorab Ghaswalla | 18 January 2013
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Intel chipIntel Corporation, the global manufacturer of computer chips, reported its quarterly earnings on Thursday evening. While the company's fourth-quarter results were beyond market expectations, Intel itself did not seem too happy with the earnings. Intel's financial results were still below the year-on-year figures.

The California, USA-based company reported a full-year revenue of US $53.3 billion, an operating income of US $14.6 billion, net income of US $11.0 billion and EPS of US $2.13. The company generated approximately US $18.9 billion in cash from operations.

Intel’s growth, it would seem, is being hampered by a slow-growing personal computer market, something that forms a major part of its overall business. This is nothing new. Readers may recall that Tools Journal had earlier reported that table-top computer sales in the fourth quarter of last year were down by 4.9 per cent.

Intel sold 6 per cent fewer PC chips in the fourth quarter, a portion of its business that accounts for nearly two-thirds of its overall revenue. Even the much-hyped launch of computers using the high-profile Windows 8 operating system from Microsoft failed to provide the much needed boost to Intel.

For the fourth quarter, Intel posted revenue of US $13.5 billion, an operating income of US $3.2 billion and a net income of US $2.5 billion. The company generated approximately $6 billion in cash from operations.

"The fourth quarter played out largely as expected as we continued to execute through a challenging environment," said Paul Otellini, Intel president and CEO, in a press statement. "We made tremendous progress across the business in 2012 as we entered the market for smartphones and tablets, worked with our partners to reinvent the PC, and drove continued innovation and growth in the data centre. As we enter 2013, our strong product pipeline has us well positioned to bring a new wave of Intel innovations across the spectrum of computing."

But Intel’s PC Client Group had reported revenues of US $34.3 billion, down 3 per cent from the same period in 2011. The Data Center Group had reported revenues of US $10.7 billion, up 6 per cent from 2011.

Business Outlook

For at least the first quarter of 2013, Intel has issued a forecast that the slump in in the PC market will remain. But the top guys at Intel have expressed hope that the launch of new types of PC products could provide some muscle to Intel’s finances later in the year.

[Image Credits: Intel]

Sorab Ghaswalla

Sorab Ghaswalla

Sorab Ghaswalla is the Founder of India-based digital world consultancy firm, New Age Content Services LLP, an Internet Entrepreneur & Consultant, a journalist, and owner/Editor of 2 websites. In his free time, he contemplates the larger implications of digital life.

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