Intel posts record revenues, but mobile division sheds money

16 Jan 2015

Chip-maker Intel had a fine year on the whole in 2014, with revenues of US$55.9bn more than absorbing the US$4.2bn loss in its mobile division.

The PC division, data centre division, internet of things division, and software and services division each enjoyed positive full-year revenue in comparison to 2013, with US$34.7bn, US$14.4bn, US$2.1bn and US$2.2bn in 2014 full-year revenue, respectively.

Bloomberg reported the mobile division’s operating loss “would erase the profits at all but two of the 30-member Philadelphia Stock Exchange Semiconductor Index”.

Intel made these losses in a sector that saw revenues of US$202m down 85pc from 2013.

Indeed Intel announced a plan to help ignite its mobile division back in 2013, deciding to pay manufacturers to implement Intel devices rather than those of its rivals. That cost Intel US$1.1bn in the fourth quarter of last year alone, but it has resulted in many more devices in the world using Intel products.

The plan is to roll out more cost-effective, profit-yielding products in the future – that people are willing to pay for – on the back of this blanket approach to getting the brand out there.

Despite the loss in the mobile division, profits in Intel’s other divisions saw the company yield a net income of US$11.7bn, 22pc up on 2013.

“The fourth quarter was a strong finish to a record year,” said Intel CEO Brian Krzanich. “We met or exceeded several important goals: reinvigorated the PC business, grew the data centre business, established a footprint in tablets, and drove growth and innovation in new areas.

“There is more to do in 2015. We’ll improve our profitability in mobile, and keep Intel focused on the next wave of computing.”

Intel net revenues* (per division) for Q4 and full-year 2014

PC Client $8.8bn (up $300m) $34.7bn (up $1.4bn)
Data Centre $4bn (up $800m) $14.4bn (up $2.2bn)
Internet of Things $591m (up $53m) $2.1bn (up $300m)
Mobile & Comms -$6m (down $332m) $202m (down $1.1bn)
Software & services $557m (down $34m) $2.2bn (down $25m)
Other $617m (up $116m) $2.2bn (up $340m)
Total $14.7bn (up $900m) $55.9bn (up $3.1bn)
*In US dollars


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Gordon Hunt was a journalist with Silicon Republic