Intel Earnings: Data Center Revenue Only Partially Stalls Impact Of PC Declines
Mobile and cloud computing are two technology shifts that impact every company today. Intel’s product categories are at the center of this shift in technology. On one hand, mobile devices, such as smartphones and tablets, are cannibalizing PC sales. The PC Client group accounted for approximately 70% of Intel’s annual revenue. Intel’s fourth quarter revenue fell 3 percent from a year ago to $13.5 billion from $13.9 billion. Profits were also down 27 percent from a year earlier. On the other hand, the move to cloud computing provided Intel with the ability to capture data center growth. The company offered revenue guidance in the low single digits for 2013 with the expectation that data center growth would return to double digits.