Intel’s Profit Falls 25% With Decline In Chip Sales

Intel’s profit decline of 25% is largely due to the fall in personal computer purchases. Since less people are purchasing personal computers, Intel is selling less computer chips. As time passes and innovation occurs, people will start moving toward the new hot item. For example many consumers are purchasing tablets and smartphones instead of personal computers.

Despite this first quarter drop in sales, Intel executives are more optimistic about the rest of the year. They believe their chip sales will increase because of their new products. Intel’s most notable innovation is the Haswell chip. The Haswell chip is a power-saving processor that supports touch screen computing on ultrabook computers.

Since Intel can finally sell its chips to faster growing markets like the ultrabook and tablet computer, they believe they are in a good position to flourish. However, despite this growth in other markets, Intel is still heavily dependent on the personal computer market. I think that their revenue will increase drastically because of their new Haswell chips.

URL: http://www.nytimes.com/2013/04/17/technology/intel-profits-fall-as-pc-slump-cuts-demand-for-chips.html?_r=0

-Jonathan Chan

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