Intel revenue grows 9% to $18.7 billion in Q4

Intel has reported revenue of $18.7 billion (+9 percent) in the fourth quarter and $70.8 billion (+13 percent) in 2018.
Intel revenue Q4 2018Intel has generated revenue of $6.07 billion (+9 percent) from the data center business in Q4 2018. Intel has achieved 9 percent growth primarily due to 1 percent growth in data center processor ASP and 9 percent increase in volumes.

Intel has generated revenue of $9.82 billion (+10 percent) from client computing business, which includes sales to PC makers. Intel achieved the 10 percent growth mainly due to 6 percent increase in notebook ASP and 13 percent increase in desktop ASP.

Intel’s data-centric businesses achieved 24 percent cloud segment growth and 12 percent communications service provider segment growth while enterprise revenue declined 5 percent.

Intel’s Internet of Things Group (IOTG) revenue fell 7 percent to $816 million.

Intel’s memory business (NSG) revenue grew 25 percent to $1.1 billion.

Intel’s Programmable Solutions Group (PSG) revenue rose 8 percent to $612 million — driven by strength in the data center and communications market segments.

Mobileye revenue grew 43 percent to $183 million. Mobileye achieved 28 new design wins and 78 vehicle model launches in 2018.

Intel said weaker demand from China hurt the company’s data center chip business, which has driven growth in recent years as PC sales have slowed and cloud-based services have become more popular.

Intel Interim Chief Executive Bob Swan said data center providers tend to make large purchases in spurts and then spend time “digesting” the chips as they build out their centers.

Sales in China fell because some buyers there – especially cloud computing vendors – seem to have bought chips earlier than usual last year because of fears about U.S.-China trade tensions, Swan said. U.S. cloud computing vendors continued their usual buying patterns throughout the year, he added.

Intel forecast first-quarter revenue of $16 billion and adjusted earnings of 87 cents per share.

Intel’s search for a permanent CEO has lasted six months. Last June, then-CEO Brian Krzanich resigned after a probe of a relationship with another Intel employee. Intel will be announcing a new CEO.