Despite getting swept up in hype over the internet of thongs, Intel’s predictions for 2014 are unlikely to bring much succour to its shareholders.
Reporting its fourth quarter results last night, its net profit rose 6.4 percent for the period ending in December but revenues only grew 2.6 percent. Mind you, it still turned in a gross profit of 61 percent, which is no peanuts by any corporation’s standards.
CEO Brian Krzanich claimed the results were solid and the PC market is stabilising.
But its lucrative server market appears to be suffering with only a one percent rise in its unit sales. Krzanich said the firm had overestimated recovery in the corporate sector.
Intel is predicting a “flat” 2014 but Krzanich hopes that smartphone and tablet sales will pick up this year. Both Intel and Microsoft have been outflanked by a change in habits from customers who prefer to swipe immediately rather than wait a good while for Intel-Microsoft tablets to boot up.
