Intel announced its Q2 2016 results yesterday. A few interesting facts to note.
Slightly low on the revenue -- $13.5 billion against expectation of $13.54 billion. Misses the target by a whisker.
Net income is $1.3 billion, a huge decline compared to Q2 of 2015 ($2.7 billion). This decline is mainly attributed to company wide restructuring Intel undertook from April this year. Layoff of close to 6000 employees.
PC business is still driving Intel revenue, even though it is pretty much on down trend. Data centre server business is second in the line. IOT, Memory and FPGA business units are way behind in revenue volume.
It is rumored that Intel will make a big foray into cell phone business by making an entry into iPhone7 as modem chipset. But that doesnot seem to be reflected in the projections for coming quarters.
An interesting point to note on PC sales. PC shipment in US has shown an upward moment during first half of 2016. On the otherhand, Intel's revenue doesnot reflect that. Was it an inventory clearance ? On the other hand, global PC sales is still in downward trend.
Now, where Intel is going from here ?
It is expecting a few big ticket project wins -- iPhone modem is one such. Recently Intel announced its big foray into autonomous car by having an alliance with BMW.
These initiative will take some time to bear the fruit.
1. As of now there is no clear cut business segment of Intel which is going to takeover from its PC unit. Declining PC sales would continue to be a worry. Server business could support for some time.
2. In IOT or cell phone or automotive business, Intel will never be in driver's seat, like it did during PC era. It is one of the partners with stiff competition around.
Slightly low on the revenue -- $13.5 billion against expectation of $13.54 billion. Misses the target by a whisker.
Net income is $1.3 billion, a huge decline compared to Q2 of 2015 ($2.7 billion). This decline is mainly attributed to company wide restructuring Intel undertook from April this year. Layoff of close to 6000 employees.
PC business is still driving Intel revenue, even though it is pretty much on down trend. Data centre server business is second in the line. IOT, Memory and FPGA business units are way behind in revenue volume.
It is rumored that Intel will make a big foray into cell phone business by making an entry into iPhone7 as modem chipset. But that doesnot seem to be reflected in the projections for coming quarters.
An interesting point to note on PC sales. PC shipment in US has shown an upward moment during first half of 2016. On the otherhand, Intel's revenue doesnot reflect that. Was it an inventory clearance ? On the other hand, global PC sales is still in downward trend.
Now, where Intel is going from here ?
It is expecting a few big ticket project wins -- iPhone modem is one such. Recently Intel announced its big foray into autonomous car by having an alliance with BMW.
These initiative will take some time to bear the fruit.
1. As of now there is no clear cut business segment of Intel which is going to takeover from its PC unit. Declining PC sales would continue to be a worry. Server business could support for some time.
2. In IOT or cell phone or automotive business, Intel will never be in driver's seat, like it did during PC era. It is one of the partners with stiff competition around.
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