intel sales | KitGuru https://www.kitguru.net KitGuru.net - Tech News | Hardware News | Hardware Reviews | IOS | Mobile | Gaming | Graphics Cards Wed, 05 Nov 2014 03:06:29 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.kitguru.net/wp-content/uploads/2021/06/cropped-KITGURU-Light-Background-SQUARE2-32x32.png intel sales | KitGuru https://www.kitguru.net 32 32 Intel’s building channel inventory could impact future sales – analyst https://www.kitguru.net/components/cpu/anton-shilov/intels-building-channel-inventory-could-impact-future-sales-analyst/ https://www.kitguru.net/components/cpu/anton-shilov/intels-building-channel-inventory-could-impact-future-sales-analyst/#comments Wed, 05 Nov 2014 02:58:26 +0000 http://www.kitguru.net/?p=220329 Intel Corp. has been reporting strong financial results this year since it gained market share from Advanced Micro Devices, enjoyed increased sales of corporate PCs and introduced rather competitive products for various market segments. However, the success of Intel’s products could also has its disadvantage: since the company is boosting inventory in the channel, this may impact …

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Intel Corp. has been reporting strong financial results this year since it gained market share from Advanced Micro Devices, enjoyed increased sales of corporate PCs and introduced rather competitive products for various market segments. However, the success of Intel’s products could also has its disadvantage: since the company is boosting inventory in the channel, this may impact its future sales.

It is normal for chipmakers to build channel inventory in the first half of the year and then sell it in the second half of the year. According to Stacy Rasgon, an analyst with Bernstein Research, the situation with Intel this year is somewhat atypical since inventory build in the first half of 2014 was not followed by channel inventory drain in the second half of the year. The world’s largest chipmaker sells microprocessors at a rate that surpasses sales of PCs, thus continues to build up inventory in the channel.

intel_core_pentium_devil_s_canyon_lga1150_haswell

“Far from draining channel inventory in 2H14, Intel’s Q3 results and implied Q4 outlook suggest channel inventories will continue to build into the second half of the year, an event we have not seen in years and years,” said Ms. Rasgon in a note to clients, reports Tech Trader Daily. “This is not necessarily inconsistent with Intel’s own statements (they have indicated they are replenishing the channel in front of a “normal” consumer sell-through season).”

If sales of personal computers during the holiday season and prior the Chinese New Year are high enough, then Intel’s chips will all be used to build systems. However, if sales of PCs fall short of expectations, then there will be millions of unsold Intel’s processors in the channel.

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Excessive amount of microprocessors in the channel will make it harder for Intel and partners to sell future chips, including mainstream central processing units based on the “Broadwell” and the “Skylake” micro-architectures starting from the second quarter of 2015. In the worst-case scenario Intel may even need to delay (or limit) new product launches to sell older products first.

Discuss on our Facebook page, HERE.

KitGuru Says: Intel is clearly interested in selling as many CPUs as possible, it is just natural for the company. What is unclear is why PC makers and channel partners of the chip giant get more microprocessors than they can possibly sell?

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Intel reports strong results as sales of PCs improve https://www.kitguru.net/components/cpu/anton-shilov/intel-reports-strong-results-as-sales-of-pcs-improve/ https://www.kitguru.net/components/cpu/anton-shilov/intel-reports-strong-results-as-sales-of-pcs-improve/#respond Tue, 15 Jul 2014 22:56:31 +0000 http://www.kitguru.net/?p=203098 Intel Corp. on Tuesday disclosed its financial results for the second quarter of the year. The company reported revenue of $13.8 billion, net income of $2.8 billion and gross margin of 64.5 per cent. As expected, Intel’s results improved because of better sales of personal computers and continued strong sales of servers. However, revenues the …

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Intel Corp. on Tuesday disclosed its financial results for the second quarter of the year. The company reported revenue of $13.8 billion, net income of $2.8 billion and gross margin of 64.5 per cent. As expected, Intel’s results improved because of better sales of personal computers and continued strong sales of servers. However, revenues the chip giant got from its mobile and communications group were significantly below expectations.

Intel’s PC client group's revenue during the Q2 FY2014 was $8.7 billion, up 9 per cent sequentially and up 6 per cent year-over-year. The main reason for improved sales of personal computers (and thus Intel processors), which have been declining for several years now, was the fact that businesses and enterprises finally started to replace their PCs based on Microsoft Corp.’s Windows XP operating systems with new systems after the software giant ceased to support its old OS in April. It remains to be seen how sustainable such increased PC shipments are and whether Intel manages to further increase sales of its client chips.

The data center group reported revenue of $3.5 billion, up 14 per cent sequentially and up 19 per cent year-over-year. Intel’s DCG has been showing strong results for years now thanks to high demand for servers and continued migration to industry-standard x86 servers from mainframes and other proprietary systems.

The company’s Internet-of-things group’s revenue was $539 million, up 12 per cent sequentially and up 24 per cent year-over-year. Since Intel’s IoT group combines intelligent systems group as well as Wind River organizations and sells hardware, software, services and platform elements, it is not really surprising that it is growing. This does not mean that the company sells a lot of Quark system-on-chips for next-generation ultra-low-power devices.

“Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things,” said Brian Krzanich, chief executive officer of Intel.

intel_headquarters

Intel’s mobile and communications group reported revenue of $51 million, down 67 per cent sequentially and down 83 per cent year-over-year. The results of the business unit truly disappoint since they mean that Intel either did not sell a lot of its latest-generation mobile system-on-chips based on the Silvermont micro-architecture that belong to the Bay Trail family, or sold them at huge discounts. Nonetheless, Intel remains optimistic about its mobile and ultra-mobile solutions.

“With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal,” said Mr. Krzanich. “In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays.”

Intel also reported software and services operating segments revenue of $548 million, down 1 per cent sequentially and up 3 per cent year-over-year.

For the third quarter of its fiscal 2014 Intel expects to receive $14.4 billion, plus or minus $500 million, in revenue. The company expects gross margin to increase to 66 per cent.

Discuss on our Facebook page, HERE.

KitGuru Says: It will be interesting to see whether Intel’s rival AMD also managed to benefit from increased sales of business PCs in the second quarter… Unfortunately for both Intel and AMD, it does not look like they are truly successful with their system-on-chip offerings for tablets.

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Intel raises revenue expectations as demand for business PCs increases https://www.kitguru.net/components/cpu/anton-shilov/intel-raises-revenue-expectations-as-demand-for-business-pcs-increases/ https://www.kitguru.net/components/cpu/anton-shilov/intel-raises-revenue-expectations-as-demand-for-business-pcs-increases/#respond Fri, 13 Jun 2014 03:47:38 +0000 http://www.kitguru.net/?p=198163 Intel Corp. on Thursday announced that as a result of higher demand for business personal computers its sales for the second quarters will be significantly higher than expected. The world's largest chipmaker also increased its revenue and gross margin forecasts for the whole year. It is believed that businesses and enterprises started to replace systems …

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Intel Corp. on Thursday announced that as a result of higher demand for business personal computers its sales for the second quarters will be significantly higher than expected. The world's largest chipmaker also increased its revenue and gross margin forecasts for the whole year. It is believed that businesses and enterprises started to replace systems with new PCs because Microsoft Corp. no longer supports its Windows XP operating system.

Intel now expects second-quarter revenue to be $13.7 billion, plus or minus $300 million, as compared to the previous range of $13.0 billion, plus or minus $500 million, the company said. The chipmaker is forecasting the mid-point of the gross margin range to increase by 1 point to 64 per cent, plus or minus a couple of percentage points. Intel also projects some revenue growth for the year as compared to the previous outlook of approximately flat. Intel is scheduled to report its second-quarter financial results on July 15, where it will discuss the reasons behind its revenue increase in details.

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A number of market observers said that since Microsoft no longer supports the Windows XP operating system, many business and enterprise customers started to buy new machines featuring modern OSes and hardware. As a result, the demand for PCs began to increase in April. It is believed that the demand for business PCs will continue to be strong for the rest of the year.

Business PCs are powered by the Intel Core i-series processors featuring the vPro technology, which are based on the latest micro-architectures, such as the Ivy Bridge and the Haswell. If consumers also started to replace their PCs because of the Windows XP support (the lack of it), then shipments of Intel’s chips like Atom, Celeron and Pentium will also get a boost.

While Intel and PC makers will enjoy a boost in sales thanks to the end of the Windows XP support, it should be noted that such situation only happens once in several years.

“PCs have been getting less bad for a while,” said Stacy Rasgon, Bernstein analyst, in an interview with Reuters news-agency. “But if it's all business PCs then the question is going to be sustainability.”

Discuss on our Facebook page, HERE.

KitGuru Says: While it is obvious that along with Intel a number of big PC suppliers will also benefit from increased demand for business PCs, it remains to be seen how the industry as a whole will (and whether) benefit from this situation…

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Intel struggles dealing tablets to students https://www.kitguru.net/lifestyle/mobile/tablet-pc/jules/intel-struggles-dealing-tablets-to-students/ https://www.kitguru.net/lifestyle/mobile/tablet-pc/jules/intel-struggles-dealing-tablets-to-students/#respond Mon, 26 Nov 2012 10:20:45 +0000 http://www.kitguru.net/?p=116657 There are some products that are easy to push to students and others that are a lot harder. Intel seems to be finding out the hard way that supplying the wrong kind of tablets leads to reduced sales. KitGuru hides in the bush with night vision goggles. A story reached KitGuru about a year ago, …

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There are some products that are easy to push to students and others that are a lot harder. Intel seems to be finding out the hard way that supplying the wrong kind of tablets leads to reduced sales. KitGuru hides in the bush with night vision goggles.

A story reached KitGuru about a year ago, which focused on the inability of one African government to implement (what it thought was) a radical new approach to IT and education. Money was made available for several thousand laptops to be given to poor students in order to boost their progress.  While we applaud the effort, the outcome was – perhaps – not so difficult to predict. Supply a starving man with a bread roll, butter and a silver knife – then he's more likely to sell the knife to buy more bread as he is to use it for spreading.

In the UK, a variation of that story means that some education authorities are coy about having out thousands of cool tablets. The resale value – along with the lack of true ruggedisation – means that the good intentions behind any such investment are likely to fall off the tracks soon after implementation.

That brings us to Intel's efforts with its StudyBook. Manufactured for them by Elite Group (ECS), this 7″ tablet has limited ruggedisation and some resistance to liquid spills. Lauded when launched as being ‘close to the Holy Grail' by Ziff Davis in the States, sales have fallen short of what Intel had hoped for.

Original plans targeted sales of up to 4 million units, but – so far – Intel seems to have only just hit 1.6 million. When you compare that to the kind of sales Apple enjoys in the consumer space, you can see just how low it is. What's more disappointing for Intel is that the education market is truly significant. Here in the UK, companies like Alan Sugar's old education specialist Viglen, still bang in massive, multi-million pound revenues during the peak summer season.

Speaking with people inside Intel, they believe that the reason why sales figures have been missed buy around 50% for both StudyBook and UltraBook products is price. The student tablet seems to retail at around $579 (£399), while UltraBooks can easily cost more than $1,500 (£1,000).

The challenge must be, “If you want to charge more than Apple prices – to students or consumers – do you have the brand equity necessary?”

EcoSystem, check. Security, check. Ruggedisation, check. Very high price, check. Whoops?

KitGuru says: We applaud Intel for working hard to create these new markets. Sure, the press will bang on about ‘Sales targets being missed by 50%' etc, but the reality is that Intel had ‘close to zero' tablet sales, but now – with StudyBook – it has sold more than 1.5 million additional units. The same goes for UltraBooks. Missing your sales target by millions of units, misses out the vital fact that your boosted sales into a new market that you didn't have before. Can this kind of price structure succeed, long term, in a Google Android world?  We suspect no.

Comment below or in the KitGuru forums.

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Intel cut Q4 sales projection by $1 billion https://www.kitguru.net/channel/raymond-daily/intel-cut-q4-sales-projection-by-1-billion/ https://www.kitguru.net/channel/raymond-daily/intel-cut-q4-sales-projection-by-1-billion/#respond Tue, 13 Dec 2011 08:33:16 +0000 http://www.kitguru.net/?p=70374 Intel have cut their Q4 sales projection by $1 billion, citing supply shortages due to the floods in Thailand. The flooding caused damage to many factories in Thailand that produce disk drives. Intel say that while they don't make disk drives, the shortage has caused wide spread problems within the industry as a whole, especially …

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Intel have cut their Q4 sales projection by $1 billion, citing supply shortages due to the floods in Thailand.

The flooding caused damage to many factories in Thailand that produce disk drives. Intel say that while they don't make disk drives, the shortage has caused wide spread problems within the industry as a whole, especially for companies building their own computers. This has had the knock on effect of them cutting orders from Intel for new processors.

Almost half of the world's supply of disk drives is produced in Thailand and the floods disrupted operations at more than a dozen major factories.

Stacy Smith, Intel's chief financial officer told analysts “We are seeing a reduction in inventories across the supply chain.”

The shortages could also cause prices to rise, effecting the consumer in the high street. Organisations such as Hewlett Packard, Dell and Apple have all said that the flooding may cause problems for their business on some level.

Intel's stock fell by 4 percent after the announcement.

The floods caused damage across a wide spread area of Thailand

Mercury News added “But as a result of the disruption, IDC believes the volume of PCs sold could be 10 to 20 percentage points lower than previously expected in the first quarter of 2012, Loverde said. Before the floods, IDC had forecast PC shipments to increase by 8 percent in the first quarter, from 80.5 million units a year earlier; it's now predicting a decline of 2 to 13 percent.

Leading computer-makers have been reluctant to publicly quantify the shortage's impact. Palo Alto-based HP said last month that it expects sales to suffer, although CEO Meg Whitman said the world's biggest PC-maker will get “more than our fair share” of available disk drives because of long-standing relationships with suppliers.

At Intel, which sells chips to most of the world's computer-makers, Smith said the impact has become clearer in the past two weeks, as disk-drive companies began telling customers what their allotments are likely to be in the coming months.”

Kitguru says: Analysts are claiming that disk drive production should return to normal in the first half of 2012, although confirmed dates have not been mentioned yet.

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Intel soar past Samsung – 44% higher sales https://www.kitguru.net/components/carl/intel-soar-past-samsung-44-higher-sales/ https://www.kitguru.net/components/carl/intel-soar-past-samsung-44-higher-sales/#comments Mon, 23 May 2011 08:36:23 +0000 http://www.kitguru.net/?p=46179 According to IC Insights, Intel have extended their lead over nearest rival Samsung by a whopping 44 percent. The report shows the strength of Intel sales right now, with Samsung literally miles behind. Another chipmaker in the report, Nvidia, recorded sales down by six percent with Panasonic also shows a decline of 9 percent. The …

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According to IC Insights, Intel have extended their lead over nearest rival Samsung by a whopping 44 percent.

The report shows the strength of Intel sales right now, with Samsung literally miles behind. Another chipmaker in the report, Nvidia, recorded sales down by six percent with Panasonic also shows a decline of 9 percent. The report however does not detail ON's purchase of Sanyo Semiconducter in Q1 2011 which has caused ON's sales to increase by 58 percent.

The overall semiconductor market looks healthy in 2011, as the top 20 suppliers recorded an increase of 11 percent in Q1 2011 compared to Q1 2010. The growth rate has exceeded expectations, one point higher than the IC Insight's forecast of 10 percent.

The top 5 memory suppliers all saw growth, apart from Elpida who are DRAM dependant – they recorded a staggering 31 percent drop in revenue. These sales figures can be accredited to the growing flash memory market. Toshiba, Samsung and Micron Technology all had double digit increases on year in Q1.

KitGuru says: Intel will be pleased with the results.

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Intel record $11 billion quarter: Atom sales dropping however https://www.kitguru.net/components/cpu/carl/intel-record-11-billion-quarter-atom-sales-dropping-however/ https://www.kitguru.net/components/cpu/carl/intel-record-11-billion-quarter-atom-sales-dropping-however/#respond Thu, 14 Oct 2010 08:03:42 +0000 http://www.kitguru.net/?p=19906 Intel have posted a record quarter, with a staggering $11.4 billion revenue. This is the first time in their history that they have broken the $11 billion revenue barrier and $3 billion of this is net income. Intel chief Paul Otellini said that “these results were driven by solid demand from corporate customers, sales of …

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Intel have posted a record quarter, with a staggering $11.4 billion revenue. This is the first time in their history that they have broken the $11 billion revenue barrier and $3 billion of this is net income.

Intel chief Paul Otellini said that “these results were driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets.”

Intel's Atom processor is not selling well however thanks to the ultra low power ARM processor and Intels's own CULV processor which is much faster and seems to be widely adopted by the public. The drop in sales for ATOM processors and chipsets measured around 4 percent which is not healthy.

Intel chief Paul Otellini

On a more positive note the PC and data centre markets have been very strong, with a 3 percent increase in the last quarter, helping to break revenue records.

Otellini gave a nod to Apple's iPad success and said during the earnings conference call “I know that the big question on everyone’s mind is how Intel will respond to new computing categories where Intel currently has little presence: specifically, tablets. We’re going to utilise all of the assets at our disposal to win this segment: the world’s best silicon process technology, the best compute architecture and our global scale.” He then also preceded to mention Intel solutions in the Windows, Android and MeeGo markets.

Otellini also highlighted the point that their recent purcase of Infineon would see the 3G mobile broadband technologies integrated within the Atom chipset over the next 3 years. Clearly they aren't yet giving up on ATOM, even though the sales are flagging.

KitGuru says: CULV seems to be the more successful platform, so should Intel ditch ATOM and focus on this platform entirely?

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Intel ‘best quarter ever’ – revenue of $10.8 billion https://www.kitguru.net/channel/zardon/intel-best-quarter-ever-revenue-of-10-8-billion/ https://www.kitguru.net/channel/zardon/intel-best-quarter-ever-revenue-of-10-8-billion/#comments Wed, 14 Jul 2010 09:49:45 +0000 http://www.kitguru.net/?p=7782 It has been a good year for Intel, they have posted their earnings for the 2nd quarter of 2010 and have reported a revenue of $10.8 billion and a net income of $2.9 billion. This is their best quarter ever recorded. Paul Otellini, Intel CEO and President said “Strong demand from corporate customers for our …

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It has been a good year for Intel, they have posted their earnings for the 2nd quarter of 2010 and have reported a revenue of $10.8 billion and a net income of $2.9 billion. This is their best quarter ever recorded.

Paul Otellini, Intel CEO and President said “Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history, our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future.”

Interestingly the Atom line up of low power chipsets was up 16% over the last quarter and generated a revenue stream of $413 million.

KitGuru says: Intel seem to be on a high recently and we can see no signs of it slowing down either.

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