Intel Profit And Revenue Fall In Q2 Amid PC Decline
Revenue for the quarter of US$13.2 billion (around $17.9 billion) was down 5 per cent from $13.8 billion in last year’s corresponding quarter, with net income of US$2.7 billion down 3 per cent from US$2.8 billion.
While Intel’s computing group saw revenue decline from US$8.72 billion to US$7.54 billion year-on-year, its data centre group (US$3.51 billion to US$3.85 billion) and Internet of Things group (US$539 million to US$559 million) both recorded revenue growth.
Gartner last week found that global PC shipments slumped 9.5 per cent year-on-year in the 2015 second quarter, with the International Data Corporation recording an 11.8 per cent decline. Gartner has forecast PC shipments will decline 4.4 per cent in 2015.
“Second quarter results demonstrate the transformation of our business as growth in data centre, memory and IoT accounted for more than 70 per cent of our operating profit and helped offset a challenging PC market,” Intel CEO Brian Krzanich commented.
“We continue to be confident in our growth strategy and are focused on innovation and execution. We expect the launches of Skylake, Microsoft’s Windows 10 and new OEM systems will bring excitement to client computing in the second half of 2015.”
Intel has forecast third quarter revenue of US$14.3 billion, plus or minus US$500 million, while it expects revenue for the full-year to decline by approximately 1 per cent.