Surging PC Sales Help Intel Deliver a Strong Quarter

Microprocessor giant Intel today reported that it earned a net income of $5.9 billion on $20 billion in revenues in the quarter ending December 31, 2020.

“We significantly exceeded our expectations for the quarter, capping off our fifth consecutive record year,” outgoing Intel CEO Bob Swan said in a prepared statement. “Demand for the computing performance Intel delivers remains very strong and our focus on growth opportunities is paying off. It has been an honor to lead this wonderful company, and I am proud of what we have achieved as a team. Intel is in a strong strategic and financial position as we make this leadership transition and take Intel to the next level.”

Intel’s results didn’t just surprise the company, they were well ahead of investor expectations as well. These are the final results in Mr. Swan’s tenure; Pat Gelsinger takes over as the new Intel CEO on February 15.

Intel cited much stronger than expected PC sales for the happy surprise: Revenues were $2.6 billion higher than expected thanks to PC-centric revenues that were driven by a 33 percent gain, year-over-year, in PC unit sales. PC makers sold more Intel-powered portable PCs in the quarter than at any point in history, the company noted.

The numbers bear out this assessment: Intel’s PC-centric Client Computing Group (CCG) landed $10.9 billion in revenues in the quarter, more than half of all of Intel’s revenues, and was up 9 percent YOY. Intel’s Data Center Group (DCG) was its second-largest business with $6.1 billion in revenues, but that was down 16 percent YOY.

For the full year 2020, Intel reported a net income of $20.9 billion, flat when compared to 2019, on revenues of $77.9 billion, up 8 percent YOY. Intel’s CCG delivered $40.1 billion of those revenues, up 7 percent YOY.

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  • madthinus

    Premium Member
    21 January, 2021 - 5:17 pm

    <p>Probably the best indication that 10nm is maturing, Intel is meeting demand. Also, good growth considering the strong competition from AMD in desktop and mobile. </p>

    • j5

      Premium Member
      22 January, 2021 - 8:22 am

      <blockquote><em><a href="#608997">In reply to madthinus:</a></em></blockquote><p>I don't know if their growth is due to their chips or because of the pandemic? I and other parents I know were just looking for laptops. What chip maker wasn't a discussion among us as much as price and Chromebook or Windows. I knew parents that were buying tablets and keyboard accessories because they couldn't find laptops.</p>

      • jrh

        Premium Member
        22 January, 2021 - 10:52 am

        <blockquote><em><a href="#609045">In reply to j5:</a></em></blockquote><p>Interesting observation about the Tablet and Keyboard combo – I never thought about that. I have seen an uptick in refurbed laptops for sale as well at local stores</p>

  • curtisspendlove

    21 January, 2021 - 8:55 pm

    <p>Somehow I think the chip manufacturers will be just fine. ;)</p>

  • b6gd

    21 January, 2021 - 9:55 pm

    <p>I think Intel is being bested by everyone of their competitors in so many ways and I only see that gap growing in the future, and on all fronts, laptop, desktop and servers.</p><p><br></p><p>That said when the demand is so strong that people just need a computer for the work/school at home pandemic worker/student, they are not picky when it comes to getting something or nothing. I would put Intel based computers and Chromebooks in the same bucket when it comes to this need. </p><p><br></p><p>Once demand dies down, and it will, we shall see how things go for Intel. I do not think the future is quite so rosy for them.</p>

    • Greg Green

      24 January, 2021 - 10:28 am

      <blockquote><em><a href="#609018">In reply to b6gd:</a></em></blockquote><p>And when intel finally gets into discrete gpus I expect them to be bested there as well. They’re developing a pattern I hope the new ceo breaks.</p>

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