Featured Articles

Nvidia Shield 2 shows up in AnTuTu

Nvidia Shield 2 shows up in AnTuTu

Nvidia’s original Shield console launched last summer to mixed reviews. It went on sale in the US and so far Nvidia…

More...
AMD CSO John Byrne talks ARM

AMD CSO John Byrne talks ARM

We had a chance to talk about AMD’s upcoming products with John Byrne, Chief Sales Officer, AMD. We covered a number…

More...
AMD Chief Sales Officer thinks GPU leadership is critical

AMD Chief Sales Officer thinks GPU leadership is critical

We had a chance to talk to John Byrne who spent the last two years as Senior Vice President and Chief…

More...
OpenPlus One $299 5.5-inch Full HD phone

OpenPlus One $299 5.5-inch Full HD phone

OnePlus is one of the few small companies that might disrupt the Android phone market, dominated by giant outfits like Samsung.…

More...
KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 GTX 780 Ti Hall Of Fame reviewed

KFA2 gained a lot of overclocking experience with the GTX 780 Hall of Fame (HOF), which we had a chance to…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Friday, 18 January 2013 10:47

Intel’s profit down 27% as PC market falters

Written by Peter Scott



Revenue falls 3%


Need more proof that the PC market is in trouble? Bellwether Intel has posted some rather lackluster results, disappointing investors, but still managing to beat analyst forecasts.

In Q4 Intel saw its profit fall 27 percent, while revenues fell 3 percent, from $13.5 billion, down from $13.9 billion. The weak PC market is to blame for the weak results and analysts estimate PC shipments declined 3.5 percent in 2012.

Intel is not out of the woods yet. It estimates its first-quarter revenue at $12.7 billion, plus or minus $500 million. Analysts expected $12.9 billion. What’s more, Intel plans to increase capital spending to $13 billion, exceeding analyst expectations by $3 billion. Analysts are now expressing fears that high capital expenditures could increase Intel’s fixed costs and drive down margins.

Intel is hoping that pouring more money into manufacturing, namely into 450mm development, will give the company a significant cost advantage in the long run. However, 450mm plants are still years away. In the meantime Intel will have to work out what it wants to do in the mobile market. It is still struggling to gain a foothold in the mobile market, dominated by ARM chips from the likes of Qualcomm, Samsung, Apple and Nvidia.

Peter Scott

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

To be able to post comments please log-in with Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments