Intel Sees Revenues Plunge with PC Demand Falling
- Paul Thurrott
- Jul 28, 2022
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Intel reported a surprising net loss of $454 million on revenues of $15.3 billion in the quarter ending June 30, a decline of 22 percent year-over-year. It was Intel’s biggest quarterly revenue drop in over a decade.
“This quarter’s results were below the standards we have set for the company and our shareholders,” Intel CEO Pat Gelsinger said. “We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues. We are being responsive to changing business conditions, working closely with our customers while remaining laser-focused on our strategy and long-term opportunities. We are embracing this challenging environment to accelerate our transformation.”
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Intel’s Client Computing Group, which provides PC makers with microprocessors and other components, suffered the biggest year-over-year loss, with $7.7 billion in revenues, a decline of 25 percent. Intel blamed a 10 percent drop in PC sales for the “sudden and rapid decline,” noting that the poor economy had compounded the previous supply chain issues.
Intel’s Datacenter and AI Group, which provides chipsets for data center servers, saw revenues fall by 16 percent to $4.6 billion in the quarter. Its Network and Edge Group posted a gain of 11 percent to $2.3 billion.
Looking ahead, Intel says that its next-generation chipsets to be available in volume in the second half of 2022. But it said that the results for the current quarter would not meet expectations either, sending Intel shares down 10 percent in after-hours trading.