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Weak PC sales see profits fall for Intel

BusinessNews
by Will Dalton
, 18 Jan 2013News
Weak PC sales see profits fall for Intel

Evidence of the PC market’s decline is emerging throughout the tech industry, with Intel’s financial report for the last quarter providing the latest tell-tale signs.

Net income dropped most dramatically for the final three months of 2012, falling by 27 per cent to $2.47 billion (£1.54 billion). Revenue fell by three per cent to $13.5 billion (£8.45 billion).

The report saw shares in the chip manufacturer tumble by three per cent in after-hours trading on Wall Street on Thursday.

The figures mean Intel still recorded profits of $11 billion for 2012 in its entirety, on revenues of $53.3 billion. But the company will be mindful these sums have fallen by 15 per cent and 1.2 per cent respectively on 2011.

Intel had warned that earnings were likely to be sluggish over the last quarter, and chief executive Paul Otellini admitted, "The fourth quarter played out largely as expected as we continued to execute through a challenging environment."

Many commentators have blamed Microsoft’s Windows 8 OS for the poor PC sales over the holiday period. The software was charged with boosting the struggling market and driving shipments of new devices, but its reception has been lukewarm since its October release.

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