Intel Disappointed With Weak Quarterly Results
The success of smartphones and tablet computers bothers the PC market. Intel also suffers. In the third quarter broke at the world's largest chip manufacturer sales and profits.
The weak PC market has the world's largest chip maker Intel brings significant losses in revenue and profits. The revenue fell in the third quarter year on year by 5.4 percent to $ 13.46 billion. The profit shrank in the third quarter by 14.3 percent to $ 2.97 billion, as the company after U.S. market close announced on Tuesday.
Intel CEO Paul Otellini said the results with a difficult economic environment, a reluctance to buy before the launch of Windows 8, and the popularity of smartphones and tablet computers. He also spoke of progress at Intel in business with light Ultrabook laptops and mobile phones.
Subdued forecast
Classic chip manufacturers such as Intel and the much smaller rival AMD is doing the slump in the PC market to create. Sales of notebooks and desktop computers fell in the last quarter by more than eight percent. The Ultrabooks have not brought the expected gains.
At the same time business is booming smartphones and tablets, where its processors are hardly used. The sector hopes for the launch of Microsoft's new operating system Windows 8 in late October. Then should also more tablets with Intel chips on the market. Intel is also making a new attempt to accommodate its processors in smartphones.
The forecast for the current fourth quarter was muted, despite the Windows-8-hopes. Intel expects $ 13.6 billion in sales - basically to the prior quarter - with a range of $ 500 million, more or less. Production is to be trimmed, which will have a write-down of approximately $ 500 million to follow, said Chief Financial Officer Stacy Smith. Intel's share price fell after trading more than three percent.
Last quarter, sales of the PC-chip division fell at Intel almost in line with the market trend by 8.3 percent to $ 8.63 billion. Net operating profit fell 16.9 percent to $ 3.34 billion. In business with processors for data centers, there was a slight increase at an almost unchanged operating profit.
The weak PC market has the world's largest chip maker Intel brings significant losses in revenue and profits. The revenue fell in the third quarter year on year by 5.4 percent to $ 13.46 billion. The profit shrank in the third quarter by 14.3 percent to $ 2.97 billion, as the company after U.S. market close announced on Tuesday.
Intel CEO Paul Otellini said the results with a difficult economic environment, a reluctance to buy before the launch of Windows 8, and the popularity of smartphones and tablet computers. He also spoke of progress at Intel in business with light Ultrabook laptops and mobile phones.
Subdued forecast
Classic chip manufacturers such as Intel and the much smaller rival AMD is doing the slump in the PC market to create. Sales of notebooks and desktop computers fell in the last quarter by more than eight percent. The Ultrabooks have not brought the expected gains.
At the same time business is booming smartphones and tablets, where its processors are hardly used. The sector hopes for the launch of Microsoft's new operating system Windows 8 in late October. Then should also more tablets with Intel chips on the market. Intel is also making a new attempt to accommodate its processors in smartphones.
The forecast for the current fourth quarter was muted, despite the Windows-8-hopes. Intel expects $ 13.6 billion in sales - basically to the prior quarter - with a range of $ 500 million, more or less. Production is to be trimmed, which will have a write-down of approximately $ 500 million to follow, said Chief Financial Officer Stacy Smith. Intel's share price fell after trading more than three percent.
Last quarter, sales of the PC-chip division fell at Intel almost in line with the market trend by 8.3 percent to $ 8.63 billion. Net operating profit fell 16.9 percent to $ 3.34 billion. In business with processors for data centers, there was a slight increase at an almost unchanged operating profit.
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