Intel's revenue drops as PC gross sales maintain sliding

Intel's profit drops as PC sales keep sliding

The place goes the PC market, so goes Intel’s revenue… and sadly, meaning these income are headed south. Intel is reporting a 6.three % yr-over-yr revenue drop for the third quarter that may largely be blamed on tanking PC gross sales. Whereas it did see upticks in its knowledge middle and web of issues teams, they weren’t making almost sufficient cash to offset the loss from Intel’s bread-and-butter chip enterprise. Processor shipments dropped a pointy 19 %, and the one comfort was a 15 % hike in promoting costs — briefly, those that did purchase PCs have been extra more likely to be efficiency professionals (like execs and lovers) than on a regular basis consumers.

It wasn’t troublesome to see this coming. The sluggish, staggered launch of its sixth-era Core processors (aka Skylake) left many distributors promoting PCs that have been previous their prime — even the discharge of Home windows 10 wasn’t going to influence some individuals to purchase previous gear. And whereas Intel has been embracing cellular and wearables, it stays a PC-targeted firm in a world filled with smartphones and tablets. The tech pioneer is sure to see higher efficiency within the fall, nevertheless it is probably not really protected from revenue drops until it reduces its dependence on typical computer systems.

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Intel's profit drops as PC sales keep sliding

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