Intel (Photo : Reuters )
About a year ago, Intel filed a promising financial report with good marginal profits because a lot of companies were upgrading from older Windows XP computers to newer Windows 8 operating system. But, this year, things are slowing down.
In their first quarter report, Intel confirmed that the company acquired a revenue of $12.8 billion which is lower that what analysts predicted for the chip maker. It is also lower when compared to the report submitted at the same time last year.
The company in their report said that the lower profits are due to the fact that most companies are investing in servers so as to consolidate costs and setting up data centers instead of individual PCs. Cloud computing is growing at a rapid pace which is cited as one of the reasons.
PC World reported that Intel was facing another issue in the mobile phone market which is booming like never before but is hugely dominated by the chip maker ARM. They could not compete with them in this segment with their Atom chips so far.
PC sales are steadily going down because of users opting to purchase smartphones or tablets to replace them. Most preferred a compact laptop for content consumption in the past which is now replaced by tablets and desktop computers or laptops are primarily used at the office or only by users who need productive tasks done.
According to the financial report submitted by Intel, the company made good profit with their server side processor, Xeon. It helped them make $3.7 billion which is a significant increase from last year.
Analyst Gartner predict that the PC business is facing a slouch but it will gradually spring back to good sales in the coming years.
