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Intel is in the new realities of the market. The Internet of Things and the mobile segment are the apple of your eye



Intel is in the new realities of the market. The Internet of Things and the mobile segment are the apple of your eye


It is no news that interest in PCs is waning. The market has become saturated, matured and it just doesn’t create any reason why we should replace the computer more than once every 2-3 years. This problem has to be dealt with not so much by the manufacturers of personal computers, but above all …

It’s not news that interest in PCs is waning. The market has become saturated, matured, and it just doesn’t create any reason why we should replace the computer more than once every 2-3 years. This issue needs to be addressed not so much by PC makers, but mostly by component vendors, namely Intel, which clearly shows the direction of its strategy in the first quarter of this year.

The first quarter of this year was perhaps not as successful for Intel as the end of the previous one. During this period, the company generated revenue of $ 12.8 billion, or 8 percent. less than a quarter before. Up to 29 percent. Operating profit also fell to $ 2.5 billion. In the case of net profit, we can speak of losses of 26%. (and 5 percent per year), which is $ 1.9 billion. However, it is worth noting that the company also generated approximately $ 3.5 billion. operating cash flow, dividends paid of $ 1.1 billion. and repurchased 22 million of its shares for $ 545 million.

What is bringing Intel down? Surprisingly, it doesn’t have to be in the personal computer segment, where the situation seems to be stabilizing. Of course, there are still notable drops, but they are not as significant as a few months ago. The personal computer division is, of course, the bulk of the blue concern. It generated $ 7.9 billion in the first quarter. Compared to the previous quarter, this is 8 percent. decrease, but comparing this result with the same period last year, we will obtain a decrease of 1%. It should be good news that Intel is managing to contain the downtrend. However, this situation can be due to many factors.

Currently, the PC segment is undergoing quite remarkable changes. Windows 8.1 is slowly taking shape and becoming a more attractive system for desktop computers. A revolution is also taking place in the mobility aspect of this type of equipment. In a word, manufacturers are trying to convince users to buy new devices. Considering the popularity and growing age of Windows 7 and Windows XP buried a few days ago, the next few quarters can be expected to bring a slight increase in sales dynamics in the market.

The situation of the second largest department of the company, the Data Center, has improved significantly. $ 3.1 billion is true about 5 percent. less compared to the previous quarter, but up 11 percent. more per year. The situation is similar in the intensively developed section of the Internet of Things. Here, revenue reached $ 482 million, representing an increase of 32% compared to the first quarter of 2013. A decrease of 6%. (both in the previous quarter and in annual terms) was recorded by the software and services department, where revenues amounted to $ 533 million.

However, you can see where Intel is investing the most money and can currently be something of a ball at the bottom of the blue company. The Mobile and Communications department responsible for smartphone and tablet systems generated 156 million in revenue this quarter. Compared to the previous quarter, it is a result of 52 percent. worse, and on an annual basis by up to 61 percent. Nobody buys new atoms? None of these things. Intel has set a high pace and is using aggressive pricing struggle, which can be seen, for example, in devices like the ASUS T100 or other budget tablets that are flooding the market (look at the Goclever Insignia 785 Pro – I do. believe this tablet has not been paid). Everything has one goal: to dominate the mobile market. Intel CEO Brian Krzanich clearly announces that 40 million tablets with Intel Atom processors will be delivered to customers this year. These are not words thrown to the wind.

What are the prospects for the future? In the second quarter of this year. Intel wants to generate revenue of $ 13 billion (roughly $ 500 million), as well as noticeably increase its margin to 63 percent. However, research and development expenditures are expected to increase throughout the year. I suspect that we can also expect more investment in the mobile market and the Internet of Things, which is probably the department of the company with the most dynamic and dynamic development. With these actions, we can expect that the domain of the personal computers section will be significantly reduced in the coming years, giving way to these two.

source: press release