Intel Pockets $2.5B USD in Q4 2012, but Troubles Analysts With Falling Revenue
January 17, 2013 4:37 PM
comment(s) - last by
Intel is still banking, but it is clearly feeling the heat from ARM
CPU kingpin Intel Corp. (
) in Q3 2012 raised eyebrows posting its first decline in revenue in 12 years, despite
beating a gloomy analyst outlook
. Now it's repeated that trend,
up to a 7 percent drop in various divisions revenue, despite a better than expected taxation rate of 23 percent (Intel expected 27 percent).
Intel still pocketed $2.5B USD in net revenue for Q4 2012 and $11.0B USD in net revenue for the year. Net revenue for the quarter was $13.5B USD and for the year was $53.3B USD. Despite the lag, Intel continued to reward shareholders with dividends and stock repurchasing. In fact, it spent $2.1B USD, or roughly 84% of its profit on those measures in Q4.
Paul Otellini, Intel president and CEO, who is
in the process of retiring
comments, "The fourth quarter played out largely as expected as we continued to execute through a challenging environment. 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. 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."
Intel finds itself in strange and unfamiliar territory. At the 2013 Consumer Electronics Show, sources close to Intel complained that the coalition of chipmakers led by ARM Holdings Plc. (
) were colluding to put Intel chips at a disadvantage in the mobile (tablet, phone) market price-wise. That's a pretty intriguing turn as Intel for decades is accused of doing exactly that in the PC market. But perhaps now the tables have turned.
With the traditional PC seeing a shrinking role in many users' lives, Intel is seeing declining chip growth. Some analysts are
calling it the next Research in Motion
, Ltd. (
) a pretty bold accusation.
2013 should be a critical test for Intel. It's
getting more serious
on the mobile front, and it's predicting that it will reverse the declines and post "low single-digit growth". If it misses that target, expect a bloodbath from investors, despite Intel's continued efforts to reward them with share repurchasing and dividends.
This article is over a month old, voting and posting comments is disabled
1/22/2013 12:44:44 PM
Just because people are ALSO buying smart phones, tablets and light-weight devices like that doesn't mean that most people also still need real computers/laptops/workstations/servers/etc. The world still needs powerful CPUs and that need won't ever go away. Intel leads the pack and can't be touched at the high end right now, and frankly even in the middle.
The main issue I see is that we're at a point where a well maintained PC can last many years and there isn't the need for faster CPUs just to run games and software (yes, in some cases). I have a 4yr old laptop that runs Photoshop, Visual Studio and a dozen other apps all at the same time and fast. Stick some cheap RAM and a SSD in there and you are right back in 2013.
Intel needs more software and reasons that people need a faster PC. To surf the web and work in Office any 5yr old system will do the job.
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
Leaked Intel Atom Roadmap Suggests 22 nm Smartphone Chip Delayed Till 2014
January 3, 2013, 5:26 PM
Paul Otellini to Retire, Even as Intel Faces Critical Test
November 19, 2012, 11:46 AM
Intel Beats Expectations, Posts $3B USD Profit
October 17, 2012, 11:40 AM
Tim Cook Touts Apple’s Product Portfolio, Performance in Letter to Employees
October 21, 2014, 8:05 AM
Lenovo Once Again The Top Global PC Maker, Apple Takes 50% of PC Profits
October 9, 2014, 7:46 AM
It’s Official: HP to Split Into Two Business Units
October 6, 2014, 8:14 AM
Quick Note: HP Plans to Split PC, Enterprise Units
October 5, 2014, 4:31 PM
Samsung Prepping 14-nm for Apple A9 Production, Handling 30 Percent of A8 Orders
October 2, 2014, 1:17 PM
Lenovo to Complete $2.1B Acquisition of IBM's x86 Server Operations on October 1
September 29, 2014, 3:19 PM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
Report: 2015 Ford Focus Electric MSRP Slashed by $6,000, Will Retail for $29,995
October 18, 2014, 6:23 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
Update: Motorola Droid Turbo Coming Oct 28, 48-hour Battery Life Confirmed
October 19, 2014, 9:19 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information