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.
"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner
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
Samsung Adds 2 TB 850 EVO, PRO SSDs for $800, $1000
July 7, 2015, 4:23 PM
Seagate Senior Researcher: Heat Can Kill Data on Stored SSDs
May 13, 2015, 2:49 PM
How to Recover Most Apps After Your NVIDIA Driver Crashes in Windows 10
March 30, 2015, 12:54 PM
Tinkerer Gets Old School Mac Plus Running on the Modern Web
March 24, 2015, 6:41 PM
Facebook-Backed Oculus Rift's Release Date Slips to 2016; Valve and HTC Salivate
March 16, 2015, 5:58 PM
Hackers Steal Roughly $1 Billion From Banks Using Malware RAT
February 17, 2015, 9:30 AM
Most Popular Articles
Why the U.S. Won't be Able to Ban Google's New Huawei Marshmallow Flagship Phone
October 3, 2015, 5:27 PM
Apple's First Fixes to iOS 9 Land w/ iOS 9.0.1 Release
September 23, 2015, 6:11 PM
Apple Watch Commands 2 in 3 Smart Watch Sales, WatchOS 2 Sweetens the Pitch
September 20, 2015, 6:07 PM
Tag Heuer Admits Its $1,800 Smartwatch Was Inspired By Apple -- Price-Wise
September 30, 2015, 6:32 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
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
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information