Intel proved they still remain one of the biggest and most successful names in the tech industry. The company surpassed earnings expectations on their profits and revenues. Intel's revenues increased by 5% in the third quarter - largely due to excellent data center revenue and the introduction of Haswell-powered portables and laptops.
Intel's earnings went against many predictions for the company as well as the overall industry prospect. Personal computer sales have decreased over the years. Traditional computers have been replaced by more portable devices like smartphones and tablets. As new quarters set in, smartphones and tablet do not show any signs of making room.
It was widely assumed that traditional computers are dying and everyone else thought Intel will go down the same way. Not until the company decided to expand their efforts and reach out to laptops and data centers. Brian Krzanich took over as Intel CEO during the second quarter of 2013.
This also encouraged concerns whether the new executive can save or transform the company into the tech leader it once was.
Intel posted revenue of $13.48 billion in the third quarter. This is more than 5% from the previous quarter. The company's net income came at 58 cents per share. This is more than 49% from the second quarter. Analysts predicted the company will post around 53 cents per share and $13.47 billion in revenue.
"The third quarter came in as expected, with modest growth in a tough environment," Mr Krzanich explained in a statement.
"We're executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August we have introduced more than 40 new products for market segments from the Internet-of-Things to data centers, with an increasing focus on ultra-mobile devices and 2-in-1 [hybrid laptop-tablet] systems."
In the third quarter, Intel started shipping Haswell-based lower-power chips. The company also began shipping fourth-generation Core processors for hybrids, laptops and all-in-ones. Revenue for data center reached $2.9 billion. This is 12% more from the previous year.
"Intel had a really good quarter which is a bit surprising given the PC market is still depressed," Patrick Moorhead, an analyst at Moor Insights & Strategy, explained.
"PC's were up and datacenter was up a lot in revenue, which has been paramount to their growth the last year. The true test for consumer PC affinity will happen in Q4 when buyers will have to choose from new phones, tablets, game consoles, smart watches, and new thin and light 2-in-1 PCs."
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