Intel reports $2 billion profit for 2013
While industry analysts say the PC sector is collapsing, Intel has reported a steady $2 billion profit for Q1 2013.
While many say the sky is falling for the PC sector, the company at the heart of the industry reported Tuesday that it is still making a healthy profit.
Intel reported Tuesday afternoon that it had reported first quarter revenue of $12.6 billion, operating income of $2.5 billion, and net income of $2 billion. The company said revenue from its PC Client Group totaled $8 billion for the quarter, down 6 % year-over year. Its Data Center Group revenue was up to 7.5% $2.6 billion.
“Amidst market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the company," said Paul Otellini, Intel president and CEO, in a statement. "We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems."
Intel’s posting of healthy profit margins comes not a week after International Data Corporation (IDC) and Gartner reported that the PC market was suffering its worst contraction in history. The company is predicting that next quarter’s profits will be on target with previous projections.
Considering Intel does not presently have a sustainable mobile strategy, these numbers, while not impressive, are sure to be pleasing to its shareholders.
This quarter marks Paul Otellini’s last as CEO, as Intel’s big boss announced his retirement in late 2012. The company’s board of directors has yet to find a replacement for Otellini.