Intel Beats Expectations, Posts $3B USD Profit
October 17, 2012 11:40 AM
Ultrabook sales suffer, but Intel still manages to impress in a stale market
Intel Corp.'s (
) fiscal third quarter
a fair bit of optimism, despite a slowing personal computer market.
The world's largest PC chipmaker earned $3.0B USD on a revenue of $13.46B USD. The analyst consensus
were earnings of $2.8B USD on a revenue of $13.23B USD (43 analysts surveyed). That represents a surprise of 5.6 and 1.8 percent on the earnings and revenue side, respectively.
Intel continues to reward its investors via $1.1B USD in dividends and $1.2B USD in stock repurchases.
The core PC Client Group was down 8 percent on a year-to-year basis in revenue, but that was expected. While reviews of Intel's latest and greatest CPU --
the 22 nm
Core i[3,5,7] branded line
-- have generally been decent, PC sales as a whole have been depressed by a slowing global economy and currency concerns.
Intel's Ultrabooks -- a push that was supposed to drive up margins -- have been
largely a sales flop
, despite Intel's claims that 2012 would be the "
year of the Ultrabook
". Some consumers are certainly going for the slender, lightweight, powerful portables, but price has proved a key disincentive driving down sales.
As analysts predicted,
Ultrabooks' "premium" prices have suppressed sales.
[Image Source: HP]
The chipmaker estimates revenue of $13.5B +/- 0.5B USD. Intel also expects $11.3B USD in capital spending, most of which goes to Intel's industry-leading research and development efforts. Intel is racing to
fend off feisty competitors
like the coalition of chipmakers licensing ARM Holdings, Plc.'s (
) lightweight, power-efficient cores and instruction sets.
Those rivals mostly use third party fabs, which trail Intel in process technology. Thus Intel is in an ideal position, in a way, in that it has slack on the architectural front, assuming its
aggressive die shrinks
can yield superior power savings to the nodes that competitors are producing on.
The Santa Clara, California giant expects to pay an effective tax rate of 27 percent for the year of 2012 -- a total
significantly higher than some
top tech companies (the average for Fortune500 tech companies is around 16 percent [
FT [analyst estimates]
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
Sales Estimates Slashed for Ultrabooks for 2012 Due to Poor Adoption
October 2, 2012, 8:57 AM
Want an Intel-Based Windows 8 Tablet? Prepare to Pay up to $300 Extra, Says Lenovo
August 17, 2012, 6:18 PM
Fourteen New Intel Ivy Bridge Chips Announced
May 31, 2012, 11:52 AM
Google: Profit up 60 Percent, War-Chest at $49.3B USD, Stock Split 2-to-1
April 13, 2012, 7:01 PM
CES 2012: Intel -- 2012 is the Year of the Ultrabook
January 9, 2012, 12:05 PM
New Way to Read Data on Ulta Hard Drives
October 23, 2016, 9:38 AM
Asus: LGA 1151 Motherboards Are Ready for Kaby Lake
October 11, 2016, 5:00 AM
LG Gram Laptop
October 10, 2016, 5:00 AM
AMD, Zen Processor might power the upcoming Apple MacBook Pro
September 30, 2016, 5:00 AM
Laptop or Tablet - Which Do You Prefer?
September 20, 2016, 6:32 AM
Microsoft Surface Pro 3 - Battery Issue Fixed
August 30, 2016, 6:30 AM
Most Popular Articles
Car Insurance - The Hidden Discriminatory Practise
October 18, 2016, 5:00 AM
Tesla Announces Level 5 Autonomous Driving
October 19, 2016, 8:30 PM
Apple iOS Contains Secret One-handed Keyboard Code
October 22, 2016, 5:00 AM
Thieves Love iPhones – More than $13,000 Stolen from Apple Store
October 21, 2016, 7:13 AM
Do you hate to do yard work?
October 20, 2016, 5:00 AM
Latest Blog Posts
Key EpiPen Competitor Out in 2017 At ' Very Low' Cost
Oct 27, 2016, 5:30 AM
Researchers use CRISPR to Accelerate Search for HIV Cure
Oct 26, 2016, 5:00 AM
Medical Council of India Makes Generic Medicines Mandatory
Oct 25, 2016, 5:00 AM
MacBoo Pro 2016: Release date Oct. 27
Oct 24, 2016, 7:16 AM
Mac Users, Try this if Your Mac is Infected?
Oct 23, 2016, 7:00 AM
Tips to Prevent Smartphones From Overheating:
Oct 22, 2016, 5:00 AM
Nasa Flies Drones at Nevada Airport
Oct 21, 2016, 8:21 AM
T-Mobile Data Problems
Oct 20, 2016, 10:17 AM
Annoying Apple Watch Problems and How to Fix Them
Oct 20, 2016, 5:00 AM
Your Mail May Soon Be Delivered By Robot
Oct 19, 2016, 9:34 AM
2018 Jeep Wrangler Prototype Sells At Junkyard
Oct 18, 2016, 5:00 AM
Samsung Shines with Gold Edition Tablet
Oct 17, 2016, 9:24 AM
Tesla Hints Mysterious Product Debut for October 17th
Oct 16, 2016, 10:14 AM
Samsung Galaxy Note 7 Phones on US flights
Oct 15, 2016, 5:00 AM
Comcast Fined $2.3 Million For Unconfirmed Services Charged To Customers
Oct 14, 2016, 5:00 AM
“American singer / songwriter “Bob Dylan is awarded 2016 Nobel Prize in Literature.
Oct 13, 2016, 10:33 AM
Battery Defect in Medical Device
Oct 12, 2016, 5:00 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information