Never underestimate a giant
Intel this week reported third-quarter revenue of $13.5 billion, operating income of $3.5 billion, and net income of $3 billion (or 58 cents per share), the latter of which represents 48 percent sequential growth. A peek around the web reveals that Intel's profit growth is almost 10 percent higher than Wall Street was expecting, allowing Intel to hush the naysayers during a period of transition to mobile.
"The third quarter came in as expected, with modest growth in a tough environment," said Intel CEO Brian Krzanich . "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 datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems."
Total revenue was up 5 percent sequentially, though flat year-over-year. Interestingly, Intel's PC Client Group revenue rose 3.5 sequentially to $8.4 billion, but was down by the same percentage year-over-year. The chip maker's Data Center Group picked up the slack by increasing revenue 6.2 percent sequentially and 12.2 percent year-over-year to $2.9 billion.
All-in-all, it was yet another lucrative quarter for Intel, though the challenge of competing with ARM in mobile is one that remains. Unfortunately for Intel, it had to delay its Broadwell launch by a quarter until Q1 2014 due to a defect in manufacturing. Broadwell, which will mostly end up in mobile devices, is built on a 14nm manufacturing process, allowing for thinner and more power efficient devices than what's possible with Haswell at 22nm.