Intel shows 25% Loss In The Q1 2013 Financial Report
Roshan Ashraf Shaikh / 7 years ago
On Tuesday, Intel released its Q1 2013 earnings report which showed that there business has went down to 25% which earned them $ 2.045 Billion as compared to $2.738 Billion that they’ve earned during Q1 2012.
Paul Otellini, Intel’s CEO, said in a statement,”Amidst market softness, Intel performed well in the first quarter and I’m excited about what lies ahead for the company. We shipped our next-generation PC microprocessors, introduced a new family of products for micro-servers, and will ship our new tablet and smartphone microprocessors this quarter.”
The company also said that they will be reducing their 2013 annual capital spending plan from $13 Billion to $12 Billion +/- $ 500 Million.
Stacy Rasgon who is one of the analyst for Bernstein Research noted in an investor’s note,”Intel is in a battle of survival—not only do they need to penetrate massively into the computing spaces currently dominated by the ARM camp, but they also need to keep the ARM camp from burrowing their way upward into the PC space. This will only get harder (and more confusing) as the lines between PCs and tablets further blur.”
Intel also says that it predicts even more decline sales of at least 8% in Q2 2013 report. The chipmaker says that this is happening as PC marketing is shrinking worldwide as the popularity of tablets and smartphones are increasing.
As pointed out by Reuters, Chief Financial officer for Intel told analysts that the upcoming Haswell processor family for desktops and as well as new ultrathin notebook lines and an improving economy will help the chipmaker to revive growth in the company during the second half of the year.
It has also been noted that there has been 14% decrease of PC sales in Q1 2013, showing the biggest decline in 2 decades, also stating the reason that buyers have been avoiding Windows 8, as pointed out earlier by IDC. Dell also blamed Windows 8 in the past.
VIA: Ars Technica