Strong PC sales push Intel to record chip sales

By on July 16, 2014, 8:30 AM
intel, cpu, revenue, chip, financials

Surprisingly strong PC sales has pushed Intel's PC client group to record unit sales, helping deliver a better-than-expected earnings report for the second quarter of 2014.

Intel reports revenue for the quarter of $13.8 billion and net income of $2.8 billion, up significantly from last quarter's results ($12.8b revenue, $1.9b profit) and from the same period last year ($12.8b revenue, $2.0b profit).

Strong results in the PC client group can be attributed to a number of factors, including Microsoft's retirement of Windows XP, new price points for a range of their products, and upgrades for systems more than four years old.

Alongside the PC client group, Intel reported increases in revenues in many other major divisions - including the data center, internet of things, and software groups - except for the mobile and communications division. Revenue for this particular group was down 83% compared to the same quarter last year, highlighting Intel's struggles breaking into the growing mobile market.

Despite disappointing results for the mobile division, Intel says they are on track to meet their goal of shipping 40 million tablets powered by Intel chips this year. The company also expects to see the trend of strong PC sales to continue through to the end of the year, which is good news for a market that was widely expected to continue declining.

Meanwhile, Intel said that the first Broadwell parts, manufactured using a 14nm process, will be available this holiday season. It's expected that only some mobile Broadwell CPUs will be released in 2014, with desktop socketed chips to follow in the first half of 2015.

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