As well as IBM, another tech bellwether has announced results today. Intel’s Q1 results have just beaten market expectations with revenue marginally up on the same period in 2011 (at $12.9b). However, Q1 revenues include a full quarter’s contribution from the 2011 acquisitions of McAfee and Infineon Wireless Solutions (totalling $935m). Sequentially total revenues were down 7%.
Over the quarter, Intel experienced strong demand from emerging markets (insinuating declining revenues in the developed world). It also highlighted strong demand from business customers but softness in the consumer segment. While its PC Client Group and Data Center Group experienced sequential revenue declines of 7% and 10% respectively, revenue from its currently loss-making ‘Other Intel architecture’ business unit - which is predominantly related to the mobile computing market - got away with a sequential decline of just 2%...
... And it is in this business where Intel sees great promise for Q2. Indeed, it has upped its forecasts and is now predicting revenue of $13.6m. During the quarter the first Intel-based smartphones will enter the market, putting the company head to head against ARM on its home turf (see ARM powers ahead). In 2011, the ‘mobile’ element of Intel’s business accounted for just 3.7% of Intel’s revenues (see Eye-catching growth from Intel). With consumers increasingly favouring smartphones and tablets over desktops and laptops, Intel will be keen to make sure that its Q2 launches are a success.