Intel has posted revenues of $14.5bn for the third quarter of its 2015 fiscal year, essentially flat on the $14.6bn posted in the same period last year.
However, profits for the quarter slipped six percent year on year, from $3.3bn last year to $3.1bn in 2015.
The fall in profits appears to have been caused by an underperformance in the firm’s newly created Client Computing Group, which incorporates mobile and PC sales performance.
The Client Computing Group posted an overall income of $8.5bn, down seven percent from $9.19bn, while overall operating income was $2.43bn, down from $3.05bn in the same quarter last year.
Other units fared marginally better. The Internet of Things Group saw overall operating income rise from $145m to $151m on revenues of $581m, while the Data Centre Group rose from $1.94bn to $2.12bn.
Commenting on the decline in hardware profits, Intel CEO Brian Krzanich explained that he hoped the growing number of high-quality devices on the market running Windows 10 and powered by Intel’s new Skylake processors will turn this around.
"So if you take a look at it, there is the ability to do Windows 10 upgrades today, but it’s not until later this month that actually you can walk into the store and get an on-shelf system with Windows 10," he said during an earnings call to discuss the results.
"Enterprises will go, I think, quicker on Windows 10 than some of the prior generations of Windows. But still enterprise takes a while to do these kinds of conversions, so those conversions will be into next year.
"So I do see that this is a great opportunity, and that we should see some tailwinds pushing us into the PC market."
Vendors such as Dell, HP and even Microsoft with the Surface Book are bringing new Intel-powered Windows 10 devices to market in the hope that high-specced devices running the new OS will finally entice new buyers.
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