We’ve written many articles on the declines in the PC market – End of the PC Era? was the latest. This has now all caught up with Intel who essentially issued a warning of flat revenues to come last night which saw its shares fall c4% in after hours trading. Revenues overall were down 5% at $12.8 in Q2 with sales from Intel’s PC division down 5%. Profits fell 29% to $2b and EPS was down 39% YOY.
But there were bright spots too – especially at data centres. Storage and cloud (up 40%) and networking (up 20%) were cited.
Intel admits that it has been ‘slow to respond’ to the mobile challenge. Whether the new chip range (Code named ‘Bay Trail’) promised for later this year will be enough or too late we will have to wait and see. But we all know that a company designed for one age almost always finds it difficult to reinvent itself for the next.
Footnote - I was interested to see that Sandisk shares soared yesterday. We all know them for their flash memory cards. But its memory to power data centres for cloud services that is cited as the main reason for their 43% jump in Q2 revenues.