Intel Corporation (NASDAQ:INTC) is a major supplier of the chips that serve as calculating engines in PCs and server systems. The shift in the preference of customers from desktop and laptop computers towards tablets and smartphones has led to suffering for the company. In spite of this, Intel firmly believes that the PC market is not dead yet and still there is room in this sector.
PC segment of Intel showing improvement
The operating income at Intel’s PC Client Group, which was previously declining at a faster pace, has slowed down now. Although the revenue from the segment has fallen over the prior year, the fall is just 1.4%. This is an indicator of the stabilization of the PC market.
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First quarter numbers from Intel Corporation (NASDAQ:INTC) have not been too bad. An increase of 1.5% was noted in the revenue for the first quarter of 2014 over the previous year and it was up to $12.76 billion. The profits of the company declined to $1.95 billion which is a decline of 4.8%. The gross margin of the company rose by 3.5% points in comparison with last year’s figure followed by a rise in the shares of the company.
Commenting on the results, CEO Brian Krzanich said, “The pace inside our company and our progress with our customers is accelerating.”
Struggling with mobile
Intel Corporation (NASDAQ:INTC) has not been very successful in the mobile sector, which is evident from the earnings. Their struggle is still going on and they seem to have little chance of doing well, believes an analyst from JP Morgan. The Mobile and Communications Group of Intel had made a huge loss of $929 million in the quarter, which is way higher than the $703 million it lost a year earlier.
In a recent note, a JP Morgan stock market analysts wrote, “We continue to view Intel’s mobile push as a battle it cannot win.”
Intel’s CEO, Mr. Krzanich, is trying hard to make a mark in smartphones and tablets. He is expecting to sell 40 million chips for tablets in 2014. The CEO also put an emphasis on exploring the possibilities for growth in the wearable devices sector and other such products used on a daily basis.
On Tuesday, Intel Corporation (NASDAQ:INTC) revealed that it sold five million tablets, in the first quarter. Krzanich views this as a “strong progress” toward the 40 million unit goal.