Intel sees PC market growth in latest financials
July 16, 2014 // 11:27 a.m.
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.