Intel profit up 6 per cent as PC market stabilises

The chipmaker stemmed the decline in its PC business at the end of last year

Intel's financial earnings for Q4 2013

Intel's financial earnings for Q4 2013

Intel has reported a 6 per cent rise in profit and said there are signs the PC market is stabilizing.

Revenue at the chip giant also increased, though Intel's data center division, which sells server chips, did less well than the company had hoped.

"We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago," Intel CEO Brian Krzanich said in a statement.

Intel's profit for the quarter, which ended December 28, was $US2.6 billion, up from $US2.5 billion in the same period a year earlier. Earnings per share were $US0.51, also up from last year.

Revenue for the chip giant was $US13.8 billion, up 3 per cent from the previous fourth quarter. That was a bit higher than Wall Street analysts had been expecting, though Intel's earnings per share were off by a penny, according to a poll by Thomson Reuters.

Sales in Intel's giant PC client division, which accounts for 60 per cent of its business, were flat from a year earlier at $US8.56 billion. That was an improvement on the declining sales it reported for the previous several quarters.

The PC division sold more chips than it did a year earlier, but the average price for its laptop chips dropped 7 per cent, Intel said. Prices for desktop chips held steady.

Sales in its data center division were up by 8 per cent to $US3 billion, the company said.

"Relative to our expectations at the beginning of the quarter, we saw higher PC Client Group revenue slightly offset by slower growth in our Data Center Group," the company said.

It was a tough year for Intel overall, however. Full-year revenue was down 1 per cent to $US52.7 billion, while full-year net income was down 13 per cent to $US9.6 billion.

Intel has been hurt by a weak economy and the ongoing shift to tablets and smartphones, which are mostly powered by ARM-based processors. Intel has been fighting back with lower-power Atom chips, and it launched a new chip architecture for the wearables market last year called Quark.

At the International CES show this month, Intel showed several prototype wearable computers based on Quark, a sign that it doesn't want to miss the boat in wearables in the same way it did with smartphones and tablets.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesintelprocessorsfinancial resultsComponents

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?