Intel: PC Market Set to Remain Weak, But Haswell Brings New Hopes

Intel Ready for Weak PC Sales, But Pins Hopes on Haswell, New Form-Factors

by Anton Shilov
04/16/2013 | 10:30 PM



After Intel Corp. posted generally weak financial results for the first quarter, the company also admitted that its sales will not grow too significantly in the second quarter as well due to weak market of personal computers. However, the world’s largest chipmaker said that its forthcoming energy-efficient code-named Haswell chips may help its partners to boost sales in the second half of the year thanks to improved laptops, new convertible form-factors and competitive prices.

“In the second quarter we will launch Haswell [family of microprocessors], enabling a new wave of ultra-sleek designs across multiple form factors by our customers. We believe the combination of an improving macro-economic environment, Haswell coming to the market; ultra-mobile form-factors like ultrabooks, convertibles, and tablets [as well as] touch-enabled devices leads to a return to growth in the second half of the year,” said Stacy Smith, chief financial officer of Intel, during a conference call with financial analysts.

Intel on Tuesday reported first-quarter revenue of $12.6 billion, operating income of $2.5 billion, net income of $2.0 billion and EPS of $0.40. The company generated approximately $4.3 billion in cash from operations, paid dividends of $1.1 billion, and used $533 million to repurchase 25 million shares of stock.

For the second quarter Intel expects revenue of $12.9 billion ± $500 million, which is slightly higher than the average seasonal increase, as the company expects some pipeline inventory replenishment due Haswell launch and in anticipation of a stronger second half.

It is noteworthy that since Intel intends to limit the Haswell sales till it gets the 8-series chipsets without erratum to the market in July, it does not predict significant improvement of sales in Q2, but points to rebound of sales only in Q3 – Q4, the second half of the year.