Intel's profits drop as Windows 10 sales fail

Whoever believed Windows 10 would shake up the falling PC market was wrong. Intel was one of such companies, and it saw its profits decrease.

According to a report by V3, Intel has posted revenues for the third quarter of the 2015 fiscal year, and basically, the company hasn't moved an inch. Its revenues are $14.5bn (£9.43bn) – while the same time last year they were $14.6bn (£9.5bn).

Profits for the quarter have changed, slipping six per cent year on year – last year they were $3.3bn (£2.15bn), and this year they were $3.1bn (£2.02bn).

The fall in profits appears to have been caused by an underperformance in the firm’s newly created Client Computing Group, which incorporates mobile and PC sales performance, V3 says.

The new division posted an overall income of $8.5bn (£5.58bn), which represents a seven per cent fall down from $9.19bn (£5.98bn) same time last year. Overall operating income was $2.43bn (£1.58bn), down from $3.05bn (£1.98bn) in the same quarter last year.

At the same time, the Internet of Things division did better, rising in income from $145m (£94.3m) to $151m (£98.25m) on revenues of $581m (£377.9m). The Data Centre Group rose from $1.94bn (£1.26bn) to $2.12bn (£1.38bn).

Commenting on the decline in hardware profits, Intel CEO Brian Krzanich explained that he hoped the growing number of high-quality devices on the market running Windows 10 and powered by Intel’s new Skylake processors will turn this around.

"So if you take a look at it, there is the ability to do Windows 10 upgrades today, but it’s not until later this month that actually you can walk into the store and get an on-shelf system with Windows 10," he said during an earnings call to discuss the results.