Feeds

Intel stuns market with Q4 sales miss

Can the Apple Effect trump the AMD Effect?

Internet Security Threat Report 2014

Lower than expected PC chip sales forced Intel into a rare revenue miss during its fourth quarter. Investors then punished the chip-maker in the after-hours markets, sending Intel shares down as much as 10 per cent.

Intel's Q4 revenue rose six per cent to $10.2bn. That figure, however, fell below a previous forecast provided by the company of fourth-quarter revenue between $10.4bn and $10.6bn. Such a miss indicates that Intel unexpectedly saw sales drop off at the tail end of the fourth quarter.

Intel attributed the sales slide to "lower than expected desktop processor unit shipments and prices."

"2005 was our third consecutive year of double-digit revenue and earnings growth, leading to the best operating results in the company's history," said Intel CEO, Paul Otellini. "Although we fell below our expectations for the fourth quarter, we enter 2006 with exciting new products, such as the Intel Core Duo and Viiv."

It has been quite a while since Intel's chip revenue fell year-over-year, but fall it did during the fourth quarter. Intel's Digital Enterprise Group reported chip sales of $4.93bn, which compares with sales of $5.26bn in the same period last year.

AMD fans will no doubt claim a victory here, saying strong server and desktop chips have finally taken a toll on Intel's bottom line. We'll see if such boasting holds when AMD reports fourth-quarter results tomorrow.

During the fourth quarter, Intel's net income jumped 16 per cent year-over-year to $2.5bn. For the full year, Intel enjoyed a 14 per cent revenue hike to $38.8bn from $34.2bn in 2004. Net income rose 15 per cent to $8.7bn.

Turning back to the fourth quarter, Intel boosted sales in Japan and throughout the Asia-Pacific region, seeing a double-digit rise in revenue. Sales in the Americas, however, dropped 10 per cent while Europe was flat.

Strong notebook sales helped Intel out once again, offsetting the weaker "enterprise" processor sales.

The strength of Intel's mobile chip group was especially apparent when comparing full-year figures. In 2005, Intel moved $8.7bn worth of notebook chips compared to $5.7bn in 2004. By contrast, Intel shipped $19.41bn worth of desktop and server chips in 2005 versus $19.43bn in 2004. AMD's impact seems clear in those figures.

In the first quarter of 2006, Intel expects to pull in between $9.1bn and $9.7bn. For the full year, Intel is looking for revenue to rise between six per cent and nine per cent. Despite winning Apple's "massive" computer business, Intel does not appear to be feeling terribly bullish about the year to come. ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.