• Profits Drop for Intel in Q3 Due to Weak PC Market

    Profits for Intel recently dropped roughly 6.3% year-over-year in the third quarter, which is said to be impacted by a diminished market for desktop and laptop PCs, though the company has been boosted by things like higher selling prices for chips and rising sales in the server market. The company ended up recording $3.11 billion in net income, down from $3.32 billion and $14.47 billion in revenue, which is a decline from $14.55 billion, according to a results statement. The sales of desktop chips ended up falling 15%, while notebook processors didnít do much better at 14%.

    The hit was softened by higher prices for the new Skylake-series processors and growth in the server and Internet of Things (IoT) sectors. Server processor sales ended up increasing by 12% while IoT revenue advanced almost 10%, albeit to $581 million. Intel also ended up reducing subsidies to PC makers building tablet-like PCs. Data from Gartner indicated that the global PC market continues to slide in the third quarter, shrinking 7.7%. The only manufacturers that made significant growth worldwide were Apple and Dell, though HP and Lenovo did make some gains in the US.

    The issues that Intel appear to be facing may be linked to a variety of factors, including an increased reliance that many people seem to have on smartphones and tablets instead of traditional desktop computers. Although Intel does make dedicated tablet processors, these tend to have largely failed to catch on since the tablet market is largely dominated by Appleís iPad as well as Android tablets that are running processors made by companies such as Nvidia and/or Qualcomm. Furthermore, Intel will likely suffer from slow sales due to people waiting for the launch of Skylake, which began shipping to PC makers during the quarter.

    Source: Intel via AppleInsider
    This article was originally published in forum thread: Profits Drop for Intel in Q3 Due to Weak PC Market started by Akshay Masand View original post
    Comments 1 Comment
    1. jonathan1683's Avatar
      jonathan1683 -
      if they made bigger performance gains i would consider upgrading more often. Usually takes 3 generations to make a big difference. No reason to upgrade from my 4790k yet
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