Intel’s very latest financial report has revealed that the companies revenues have dropped since last year, by the tune of almost $1 billion US dollars. The company, who are relying on innovations in Ultrabooks by PC vendors to stimulate growth, disappointed shareholders by announcing that revenue was down by a rather large – however not unpredictable – amount.
In the third quarter, Intel’s revenue was $13.5 billion, compared with $14.2 billion a year earlier. Net earnings were $2.97 billion, compared with $3.47 billion in the same quarter last year.
Intel introduced Ultrabooks to the PC market in late 2011 and since then all major PC manufacturers have release at least one. Even smaller companies have got on board, with the likes of Gigabyte and HCL releasing their first ever Ultrabooks during 2012. Since they were introduced, many companies have innovated within the laptop space too, such as NEC with their LaVie Z Ultrabook which makes claim for the lightest 13.3″ laptop in the world (in fact, it is lighter than any 11.6″ Ultrabook, too).
With such innovations in mind, Intel have been quick to look at the positive side of things despite revenue being down since last year:
“I absolutely expect growth in the PC segment, and I firmly believe that the level of innovation we’re seeing in Ultrabooks is going to be one of the catalysts,” chief financial officer Stacy Smith told Reuters in a telephone interview recently “I’m not going to put a number out there – but I expect it to grow.”
PC market decline
The PC market has been in decline for a number of years now. Laptops in particular have taken a severe beating from the likes of internet connected tablet computers which consumers see as a more convenient and media rich alternative. Within the tablet market, Apple has things tied up in market share, whilst in the PC market HP is the market leader. Both of these companies offer Ultrabooks; HP with their excellent Spectre XT and Apple with the Macbook Air.
Offsetting weak PC sales in the last couple of quarters has been Intel’s corporate-focused server and data center business, however this quarter, this has disappointed in revenue earnings too due to a decline in enterprise sales.
Another area to which Intel are struggling is within the mobile market; up until this year, Intel powered smartphones were none-existent however recent releases in the UK such as the Orange San Diego have kick-started a hopefully fruitful market place for the worlds largest chip manufacturer.