Intel Sees Revenues Plunge with PC Demand Falling

Posted on July 28, 2022 by Paul Thurrott in Hardware, Mobile with 6 Comments

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.”

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.

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Comments (6)

6 responses to “Intel Sees Revenues Plunge with PC Demand Falling”

  1. lvthunder

    I think this recession is going to be deeper and longer than most people think at least in the US.

  2. Stabitha.Christie

    We have to deliver better products to the PC ecosystem than any possible thing that a lifestyle company in Cupertino" - Pat Gelsinger 2021

    “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.

    Lots of talk about getting better, I wonder when that is going to happen. He seems to be going in the wrong direction.

    • will

      It will take Intel doing a complete about face on it products if it wants to change. Honestly I do not see that happening.

      • Stabitha.Christie

        Are you suggesting that ads featuring Justin Long making fun of Apple products (with Intel processors) isn’t a viable business strategy? That sounds lilMe crazy talk!

    • nine54

      Seems a little early to call for a pivot, especially given the macro environment. Intel is a big ship: can't turn it around overnight. And some changes to the strategy won't bear fruit for a while.

  3. uk user

    Hang on, I thought that it was reported of a shortage of chips affecting many industries, now Intel is blaming the fall in PC sales when many companies couldn't make things, like autos.

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