The recent reports regarding the state and predictions of the PC industry are taking its toll on Intel as well. Intel reported a profit drop of 25 percent in the last quarter taking a 2.5 percent decline in revenue.


The recent report showed that desktop PC market is currently on its knees with no way out of trouble since users are mostly turning to smartphones and tablets. Due to that same trend, Intel was hurt pretty bad reporting a Q1 revenue of US $12.6 billion with a net income of US $2 billion and operating income of US $2.5 billion.

Intel is still doing OK as it generated US $4.3 billion in cash and paid US $1.1 billion of dividends. Intel's PC Client Group revenue was US $8 billion which is down by 6.6 percent sequentially and 6 percent year-over-year. The Data Center Group revenue of US $2.6 billion also took a hit and was down by 6.9 percent sequentially and 7.5 percent year-over-year and it was the same deal with other Intel Architecture Group which took a hit of 9 percent year-over-year. On the other hand Intel spent on R&D plus MG&A around US $4.5 billion.

Intel president and CEO, Paul Otellini noted that despite the market softness, Intel performed well in this first quarter and is quite excited about what lies ahead. He also noted that they shipped their next-gen PC CPUs, introduced new family of products for micro-servers and should ship their new tablet and smartphone CPU this quarter.

Intel is certainly a giant and when it gets hit with low results in its financial report, they certainly sound like a big hit but we are quite sure that Intel's upcoming financial quarter reports might be better.

Source: Intel.com.