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Intel sees PC market growth in latest financials

Intel sees PC market growth in latest financials

Intel's latest quarterly financials suggest that the PC market is recovering from its decline, but the company's celebrations are tempered by a crashing mobile division.

Intel has published its earnings for the quarter, and it shows that reports of a recovering market for traditional PCs may be accurate with the company announcing a 40 per cent net income gain year-on-year.

According to the company's latest financial filing, Intel's revenue for the second quarter of the financial year hit $13.8 billion with profits of $2.8 billion. Representing a 40 per cent growth compared to the same quarter last year, the gains have been helped be recovery in the traditional PC market: the PC Client Group saw revenue rise nine per cent quarter-on-quarter and six per cent year-on-year, while the Data Centre Group reported 14 per cent sequential and an impressive 19 per cent year-on-year growth.

The biggest success story for growth figures, however, comes in Intel's relatively new Internet of Things (IoT) business sector. This division reported revenue of $539 million, and while that's a tiny fraction of the $8.7 billion the PC Client Group brought in it represents a whopping 24 per cent year-on-year growth - something Intel expects to continue for the foreseeable future.

'Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data centre to PCs to the Internet of Things,' Intel chief executive Brian Krzanich claimed during the earnings call. 'With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal. In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays.'

The figures aren't all rosy: Intel's efforts to break into the smartphone and tablet market continue to be stymied by the popularity of ARM-based products, with the Mobile and Communications Group seeing its revenue drop to just $51 million - a free-fall decline of 67 per cent quarter-on-quarter and 83 per cent year-on-year.

Krzanich also briefly touched upon Skylake, the successor to next-generation Broadwell, during the call. Although he would not be pushed on release dates, he did state that the plan remains to launch the first parts in 2015 but warned that a final release date decision has yet to be made.

7 Comments

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azazel1024 16th July 2014, 17:25 Quote
Yowch. That is mainful on the mobile division. That said, they have STILL yet to release the Silvermont based phone chips. I at least had the impression that Bay Trail was doing pretty well though. Though I wonder if the tablet sales of Bay Trail actually fall in to Mobile and Communications group.
rollo 16th July 2014, 20:17 Quote
Nice revenue either way.
Harlequin 16th July 2014, 20:38 Quote
they cant even PAY ihv`s to take the mobile chips oO - skylake wont help , its hampered by being X86 (again)
rollo 16th July 2014, 20:56 Quote
Still think Intel will just throw cash at the problem or take on Apple for fabspace make 3 bil or make 51mil choice would be pretty easy to me.
Harlequin 16th July 2014, 22:10 Quote
Apple are custom making their own 64 bit ARM apu`s - intel is very very late to this game.

and intel take on apple? you having a laugh? - hmm lets see - apple feel threatened by an aggressive strategy from intel - so next imac goes AMD (or even ARM) throwing away the multi billion contract with intel.....
fluxtatic 17th July 2014, 08:20 Quote
Quote:
Originally Posted by Harlequin
Apple are custom making their own 64 bit ARM apu`s - intel is very very late to this game.

and intel take on apple? you having a laugh? - hmm lets see - apple feel threatened by an aggressive strategy from intel - so next imac goes AMD (or even ARM) throwing away the multi billion contract with intel.....

I assume rollo means Intel will start fabbing for Apple on contract. Intel's essentially already announced they're willing to take contract fab work, including on their first-line fabs. If revenue stays up, though, no way in hell anyone, including Apple, will be getting any time on the 14nm lines.

And that might be where it breaks down - Apple wants the best, but won't want to pay Intel's premium for space in the best fabs. Intel is still in a position to tell Apple to stuff it. I don't see Apple eroding their own margins to get 14nm A8s or A9s fabbed.
rollo 17th July 2014, 12:31 Quote
It all depends on tmsc and Samsung in apples case, If they still want out of Samsung then there's only so many places big enough for them. Intel been one of them, Rumours are that Apple has brought out all 20nm fabspace at TSMC already for the next Iphone and Ipad launch. As they try to remove there requirements on Samsung.

Its a long shot but in a space that is all about guesswork it could be a gamble that Intel and Apple are willing to do.

Intel needs to get there own chips in a high end device that sells in large numbers to make it worthwhile. Despite what people would like to think there is no smartphone slot open and no tablet slot open for them.

Intels chips will be to expensive for anything but the highest end of devices does not leave them a lot of choices.

At the high end smartphone there is only really one phone bringing in constant profits and as Samsung have relised with there galaxy line getting people to replace on a year to year upgrade cycle is hard.

The sg4 has sold relitively poorly compared to the sg3 hence samsungs financials not looking great.

Intel would need to offer something outstanding and cheap to get the attention of the big 2.
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