Featured Articles

Apple iPad Air 2 costs $275 to build

Apple iPad Air 2 costs $275 to build

IHS has told Recode that the Apple iPad Air 2 16GB Wifi costs only $275 to build -- not bad…

More...
LG sells 16.8 million smartphones in Q3 14

LG sells 16.8 million smartphones in Q3 14

As Samsung is losing market share, another Korean company, which many had written off, is gaining.

More...
LG G Watch R EU price set at €299

LG G Watch R EU price set at €299

LG G Watch R is probably the best looking Android Wear device on the market and many have been waiting for…

More...
Nvidia GTX 970 SLI tested

Nvidia GTX 970 SLI tested

Nvidia recently released two new graphics cards based on its latest Maxwell GPU architecture, with exceptional performance-per-watt. The Geforce GTX 970…

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

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

 

Facebook activity

Latest Commented Articles

Recent Comments