Intel Corporation has disappointed the IT market with dip in revenue to $14.47 billion in third quarter of 2015 from $14.6 billion.
The Santa Clara, California, company said its $3.11 billion net income dropped from $3.32 billion for the same period a year ago.
Intel’s business has suffered as consumers and companies are buying fewer PCs, while more people are turning to smartphones and tablets that use chips made by Intel’s competitors. Intel said its PC chips business fell 7 percent to $8.51 billion.
Gartner earlier said shipments of personal computers fell 7.7 percent in the third quarter.
Intel generated $8.5 billion (–7 percent) from Client Computing, $4.1 billion (+12 percent) from Data Center, $581 million (+10 percent) from Internet of Things (IoT) and $556 million (flat growth) from Software and services operating segments.
Brian Krzanich, CEO of Intel, said: “The second quarter demonstrates Intel innovation in action. Customers are excited about our new 6th Gen Intel Core processor, and we introduced our breakthrough 3D XPoint technology, the industry’s first new memory category in more than two decades.”
Intel has slashed revenue growth forecast for its chip business for data centers as businesses reduce spending due to weak macroeconomic growth. Intel now expects the data center business to grow in low double digits in 2015, compared with its earlier forecast of about 15 percent growth.
The data center business, the company’s second biggest, had grown 19.2 percent in the first quarter, 9.7 percent in the second and 12 percent in the third quarter.
The company also slashed its 2015 capital expenditure for the third time to $7.3 billion against the previously forecast of $7.7 billion.
Intel is expected to clock $14.8 billion in total revenues in Q4 2015.
Baburajan K
[email protected]