Intel has announced revenue of $52.7bn for 2013, a one percent drop on $53.3bn in 2012, as tough market conditions and weakening PC sales continue to affect performance. However, migration from Windows XP did help lead a small recovery in the fourth quarter.
Intel turned a net profit of $9.6bn over the year, down by 13 percent on $11bn in 2012. However, the firm saw an improvement in the fourth quarter of 2013 compared with the same period in 2012, with a three percent rise to revenues of $13.8bn.
The firm’s overall slump can be attributed in a large part to declining business in its PC Client Group, where revenue of $33bn was down by four percent when compared to 2012. However, fourth quarter revenue was flat compared to the year-ago quarter, which Intel CEO Brian Krzanich said should be seen as an encouraging trend.
“The PC Client Group was down four percent for the year but the business began to stabilise and actually grew a bit in the fourth quarter, achieving all-time record i5 and i7 unit shipments. The desktop business was particularly strong in Q4, growing 11 percent over last year,” he said.
Krzanich also noted a boost in sales from firms moving away from XP as Microsoft prepares to end support for the platform, although he also said new form factors were proving popular in their own right.
“Some of the contribution to fourth quarter was the XP transition. We don't think that was the only thing. As I said, it was – a lot of the growth came from desktop. The desktop was largely enterprise in the mature markets. That really, we think, has to do with a lot of great form factors that are coming in the all-in-ones, the great innovation that's coming in there,” he said.
He also underlined the firm’s commitment to getting its chip architectures into tablets, as it looks to take market share away from rivals such as Arm.
“We've established a goal to grow our tablet volumes to more than 40 million units. With an emphasis on the value segment, after finishing 2013 with more than 10 million units and a strong book of design wins, we're off to a good start,” he said.
Revenues were much stronger in Intel’s Data Center Group, which hit $11.2bn, up seven percent on 2012, underlining its continued success in providing servers for companies using or providing cloud services.
The firm will also be hoping its push into numerous new areas throughout 2014 will help boost its revenue opportunities. This will include areas such as the Internet of Things and wearable technology, with its tiny Edison computer running its Quark processor unveiled at CES earlier in the month.
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