Lower cost Atom tablets part of Intel's turnaround strategy
Intel earlier this week announced its second quarter financial results, revealing that it raked in $12.8 billion in revenue, operating income of $2.7 billion, and net income of $2.0 billion, the latter of which is down 29 percent compared to the same quarter a year ago. Even with the decline, a $2 billion quarterly profit is hardly anything to sneeze at, and several companies would love to trade positions with the Santa Clara chip maker. However, investors can't be thrilled that Intel was slow to react to the mobile market.
Intel chief Brian Krzanich admitted as much during a conference call, saying his company was "slow to respond to the ultramobile PC trends," adding that "we've not always lived up to the standards we've set for ourselves," The New York Times reports.
Krzanich indicated that Intel was caught off-guard by the somewhat sudden decline in the traditional PC market as buyers shifted to mobile devices like tablets. To right the ship and catch up with the competition, Krzanich said lower priced chips and devices are on the horizon. He sees upcoming convertible/hybrid devices selling for as low as $400 with Atom inside, touchscreen laptops going for $300, and Atom-based tablets selling for $150-$200.
"Looking ahead, the market will continue buying a wide range of computing products," Krzancih said in a statement. "Intel Atom and Core processors and increased SOC integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast growing ultramobile market segment."
Intel's PC Client Group recorded $8.1 billion in revenue, up 1.4 percent sequentially and down 7.5 percent year-over-year. It's Data Center Group raked in $2.7 billion, a jump of 6.1 percent versus last quarter and flat year-over-year.