California Santa Clara, Intel disappointed the Stock Market with its latest results prediction, saying that its clients were having a hard time assembling notebook computers etc. amongst a global component shortage
The three months that ended in September, Intel recorded $19.2 billion in revenue, up 5% year on year, and a net income of $6.8 billion, up 60%.
Nonetheless, its largest revenue generator, the client computing group (C.C.G) business, which includes sales of chips for personal computers was down 2% year on year. Intel said revenue was lower mostly due to lower notebook volumes.
The results come against a backdrop of struggles for market share. Earlier this week, Apple announced a new Mac laptop powered by its latest generation of inhouse chips as it continues its two year transition from Intel processors for its computer lineup.
Intel’s data center business raked in $6.5 billion in revenue during the September quarter, up 10% year-on-year but lower than analysts had estimated.
Intel is blaming Beijing’s crackdown on the gaming business, which is a key customer for the company’s data centre business.
Intel Chief Executive Officer Pat Gelsinger said, adding that the Company expects the Chinese issue will continue to weigh on its data centre business into the fourth quarter.
“We have a uniquely high market share in the Chinese cloud market, so as it recovers we expect a nice recovery in that business area for us, and we expect that there will be a return to normality next year,” Gelsinger Quote