Intel sales, profits slide for 2012, but data center business growing

Continued weakness in the PC market hit the chip maker

Intel saw sales and profits drop in 2012, as the company was hit by a slide in demand for personal computers and its continued inability to make it big in the smartphone and tablet markets, but its data center business continued to grow.

The world's biggest chip maker reported revenue of US$53.3 billion for the year, down 1.2 percent compared with 2011, and posted net income of $11 billion, down 15 percent.

Revenue from its PC client division, which accounts for more than half of all revenue, fell 3 percent year-on-year.

The root of Intel's PC client problems lies in the declining market for PCs, where it has traditionally been the market leader, and the rise in popularity of tablet computers, where it faces much stronger competition.

Worldwide PC shipments fell 5 percent in the last three months of the year compared to the same period of 2011, according to an estimate from Gartner. The market amounted to 90.1 million units, it said.

Much of the drop is being blamed on tablet computers, which rather than emerging as a new class of machine that takes a place in the home between smartphones and PCs, is becoming a replacement for a PC, said Garner.

In the tablet market, Intel faces competition from companies like chip makers relying on chip designs from competitor ARM.

However, Intel's data center business recorded better results. Sales rose 6 percent to $10.7 billion as demand for its server chips climbed.

"We made tremendous progress across the business in 2012 as we entered the market for smartphones and tablets, worked with our partners to reinvent the PC, and drove continued innovation and growth in the data center," said Paul Otellini, Intel president and CEO in a statement.

"As we enter 2013, our strong product pipeline has us well positioned to bring a new wave of Intel innovations across the spectrum of computing," he said.

For the coming year, Intel said it expects to see sales rise in the low single-digit percent range.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesintelprocessorsmemoryfinancial resultsComponents

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

Martyn Williams

IDG News Service
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

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.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?