Intel Quarterly Results May Not Be Good News for PC Sector

On Thursday Intel posted its latest quarterly results, and it may leave some PC makers a little nervous.

The chip giant revealed that its PC Client Group generated revenue of $8.5 billion USD during the fourth fiscal quarter, down 1.5-percent sequentially and down 6-percent year-over-year. On a yearly basis, the PC Client Group had revenue of $34.3 billion, down 3-percent from fiscal 2011.

"The fourth quarter played out largely as expected as we continued to execute through a challenging environment," said Paul Otellini, Intel president and CEO. "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 center."

The drop in Intel's PC Client Group shouldn't come as a surprise given the consumer market's growing focus on tablets supplied by Apple, Google, and Samsung among others. There are also the new hybrids that blur the lines between tablets and notebooks, and those "phablet" devices that merge tablet and phone into one form factor.

Does this drop in sales mean we're truly entering the Post-PC era? That remains to be seen. At CES 2013, the big theme seemed to be the connected home, as many companies showcased a slew of tablets, smartphones, networking hardware and Wi-Fi capable HDTVs sharing the same space and content. While there will always be a place for the desktop form factor, the show clearly made it obvious the industry's focus is on mobilized computing and content sharing.

With its x86-based partners jumping into the tablet and smartphone pool, it only made sense that Intel followed suit and challenge mobile industry leaders Qualcomm, Texas Instruments and Samsung. Like its desktop and notebook partners, Intel needed to find an additional stream of revenue as consumer tastes continue to switch over to thin, high-performance mobile products.

"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," Otellini added.

Despite its PC Client Group's decline, the quarter wasn't exactly gloomy for Intel. Its Data Center Group had revenue of $10.7 billion, up 6-percent from 2011. On a quarterly basis, the Data Center Group generated revenue of $2.8 billion, up 7-percent sequentially and up 4-percent year-over-year. The company also saw an overall gross margin of 58-percent, 1.0-percentage point above the midpoint of the company's expectation of 57-percent.

 

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  • friskiest
    I'm 21 y.o, and I intend to build PC gaming rigs for my future children- heck, even grandchildren. Whats with this post-PC BS?
    19
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  • friskiest
    I'm 21 y.o, and I intend to build PC gaming rigs for my future children- heck, even grandchildren. Whats with this post-PC BS?
    19
  • MichaelSP
    I don't think you can ever replace PCs. Sure, current software may not need the most powerful stuff or be able to address all of it but that will change. The software will get bigger and stronger and PCs will have to as well. And that cutting edge technology will likely always be desktop material. PCs may change into quantum devices with technology we cannot conceptualise right now but they too will still likely have 'PCs' for the best stuff and for people. Even if you don't need one, they may become, at the worst, enthusiast equipment. And I agree with friskiest; I intend to build PCs for my future family.
    9
  • g00fysmiley
    peopl ehave limited bugets, when you decide you want a tablet instead of upgrading a laptop or desktop puching that upgrade back you end up with losses somewhere. I am on an every other year upgrade path, 3 year upgrade path, one year my pc next year my wife's pc then next year our laptops, with the addition of possibly adding tablets in there i have to consider when to do it. the desktops ar emore expensive so it would make sense to add them with the laptops but at the same time upgrading both portables at the same time seems... kind of pointless i am sure people are questionging having a laptop and a tablet and tablets seem smaller and can be held for use vs most laptops. honestly i think intel should concentrat more on convertable and laptops/ultrabooks that can be used for both purposes if they did that i wouldn't bother with actual tablets and would prefer a x86 hybrid system that works as both but something reasonably priced compared to what is out there now
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