Given our many warnings about the ‘slump’ in PC sales (See Windows 8 to blame for PC slump and work back), you really shouldn’t be that surprised that Intel has missed both profit and revenue expectations for Q1. Intel’s PC revenues dived 6% YOY. Conversely the much smaller data centre group recorded a 7.5% rise YOY.
Intel has been very slow to step up to the mobile/tablet challenge. They keep promising that wondrous products in that space are on the way. Until they do, companies like ARM have a clear run.
Intel shares were pretty steady in after hours trading. Many analysts feared that that the results would be even worse! Also Intel is now a dividend stock – yielding 4.2%. Oh how the mighty have fallen.