Intel profit falls as consumers shun desktops in mobile world |
| Globe and Mail - Oct 17, 2012 |
The technology industry is slowly leaving the personal computer behind, and the world’s best-known chip maker is having a hard time saying goodbye.
Intel Corp. announced its third-quarter earnings on Tuesday, posting numbers that illustrate the Herculean difficulties of transitioning from a desktop to a mobile world. The California-based chip maker generated income of $3-billion (U.S.), or 58 cents a share. Although that number is higher than what most analysts expected, it still represents a 14 per cent drop from the same quarter last year. Revenue also fell 5.5 per cent year-over year.
Intel’s woes are at least partially a result of the global economic crisis, which has resulted in slowing personal computer and general technology sales, especially among businesses. Indeed, tech giant International Business Machines Corp., which also posted weaker than expected quarterly numbers on Tuesday, also blamed its woes partially on declining revenue in several overseas markets, including Europe.
But Intel appears to be in the middle of a much bigger transition. Independent of the wider economy, the outlook for traditional PC sales is grim. Global PC sales have remained flat or have dropped slightly throughout much of this year, according to research firm Gartner Inc. Intel’s PC group itself posted an 8 per cent slump in revenue in the third quarter, compared to the same period last year.
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- Posted: 2012-10-17 12:55:15
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