Intel is putting on a brave face amid slowing revenues as PC sales continue to dwindle and company profits plummet.
The company said that its latest quarter brought some $12.9bn in sales, but both its PC Client and Data Centre groups saw sales drop compared to the same period last year.
According to Intel, PC revenues dropped by some six percent year-on-year to $8bn. Meanwhile, datacentre revenues were down by 7.5 percent over the same period in 2012 to $2.6bn.
In total, this meant profits were down to $2bn, down a quarter on the same period a year ago. The report comes amid a rough stretch for PC vendors, who make up a major part of Intel's customer base.
Analysts have noted in recent months that vendors across the PC space have seen drops in sales as consumers have opted for tablets over notebook and desktop systems.
Intel chief financial officer Stacy Smith told analysts the decline in its PC business was consistent with PC makers running down inventory on older models, but said the firm was confident new devices on its latest chip architectures would help the firm recover.
"In the second quarter we launch Haswell enabling a new wave of ultra-sleek designs across multiple form factors by our customers."
He predicted that as its Haswell-based devices begin to ship, Intel's PC business would pick up in the second half of the year - although this was also dependent on the global economy recovering too.
Haswell are Intel's fourth-generation Core processors, designed to replace its current Ivy Bridge systems, and are aimed at the so-called ultraportable systems, including tablets and ultrabooks.
Intel has sought to diversify its reach in the microprocessor market in recent years. In addition to its PC and server units, the company has sought to expand its Atom line into handset and tablet systems.
While some vendors have taken a hit from the drop in PC sales, vendors who have shifted their focus to tablets, such as Apple have actually been able to make gains in the market.
Smith also told analysts that Windows 8 had failed to provide a fillip for PC makers, but insisted its Haswell chips would drive adoption.
"With Haswell, overall performance goes up, graphic performance goes up," said Smith.
"The power envelope for that performance is exceptionally better than Ivy Bridge," he added.
Furthermore, Haswell-based systems would be ideally suited to the Windows 8 touch-based environment, said Smith. And while that needed some training for users to get accustomed to, once they are up and running, users would embrace the update, he added.
"It's a better Windows than Windows 7," he said.
The firm was also coy on any succession plans for its chief executive role, as Paul Otellini is set to step down in May.
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