Gaming PC

Intel Posts Largest Loss in Its History as Sales Plunge 36%

Intel’s first-quarter revenue beat its own expectations, but the company said on Thursday Posted It was the biggest loss in history as margins plummeted to new lows over the past few years. The company expects short-term results to continue with weak demand for his PCs and servers, but remains optimistic about the outlook for the next few years after its next-generation products hit the market.

Largest loss among low margins

Intel’s first quarter revenue fell to $11.7 billion. That’s $200 million more than the company predicted in January, but it’s still down 36% year-over-year. The company lost $2.8 billion to him during the quarter as gross margin dropped to 38.4%. Intel paid out a $1.5 billion dividend despite its biggest ever loss.

“While we remain cautious about the macroeconomic outlook, our focus is on what we have in control as we deliver on IDM 2.0: driving consistent execution across our process and product roadmaps to drive a $1 trillion market. It’s about moving the foundry business forward to maximize the opportunity, said Intel CEO Pat Gelsinger.

(Image credit: Intel)

Client PC and Mobile Eye business units profitable, others bleeding


(Image credit: Intel)

Intel’s Client Computing Group (CCG) maintained its position as the company’s largest revenue generator, but revenue in the first quarter of 2023 was $5.8 billion (down 38% year-on-year), down from $9.3 billion in the same period in 2022. decreased sharply. Cheaper CPUs are becoming more popular as the total available market (TAM) declines, PC OEMs continue to destock, and consumers remain cautious about spending. CCG was still a profitable business unit for Intel as it made his $520 million, but its operating margin dropped to his 9%.

Intel’s CFO, David Zisner, said in an earnings call to financial analysts and investors: […] As we discussed last quarter, there was a significant depletion of customer inventory during this period. Inventory levels remain elevated, but we expect the market to approach equilibrium as we exit the second quarter. Mixing resulted in successive decreases in ASP. ”

(Image credit: Intel)

Q1 2023, Intel’s Data center and AI group (DCAI) experienced a sharp 39% year-over-year decline in data center hardware revenue, with revenues down from $6.1 billion in Q2 2022 to $3.7 billion in the prior quarter. Operating profit margin dropped to -14%, losing $580 million.

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