Intel certifies its downfall with the PC industry but points to stabilization
The PC industry has bottomed. It is at least what Intel believes, the world’s leading chipmaker after closing a 2013 to forget. The drop in computer sales has pushed down its profit, which subsided by 13%. However, in the last quarter, the company sees signs of stabilization. Still, the consequences of the ‘bleeding’ come in the form of job cuts: Intel plans to reduce its workforce by 5%, with 5,000 layoffs. Apart from the figures that offer large technology consulting, best scale to determine the health of a sector is the results of the largest companies operating in it. In this case, Intel can be a good barometer for the PC industry accumulating several years of sharp declines.
The great figures
Before drawing conclusions, let’s see the big numbers. The chip giant ended the year with total revenues of 52,700 million, representing a 1% reduction. Benefits dropped down by 13% to 9,600 million. Both figures are not far removed from the ones analysts had forecast. The picture clearly points downward, especially as far as benefits are concerned involving the behavior in PC sales. The PC industry entered 33.000 billion dollars throughout the year which represents a decrease of 4%.
In view of the results, we could conclude that the ‘bleeding’ of the PC industry continues. But since the company claims that the fourth quarter is showing signs of stabilization in this segment. This was said by its CEO, Brian Krzanich, who has confirmed that the PC industry was able to increase revenues by 2% to 8,600 million. The CFO, Stacy Smith, impinged on the same idea stating “The market stabilized in the second half of the year.”