Computer chip maker Intel’s revenue and profit declined during the first quarter in the face of declining PC sales as consumers snap up mobile devices, such as tablets and smartphones, instead.
Intel’s first-quarter revenue totalled US$12.6bn, down from US$12.91bn from the year-ago period. Net income amounted to US$$2.0bn, a decline of 25pc from US$2.74bn from the same period last year.
Operating income reached US$2.5bn, while earnings per share also decreased, to US$0.40, down from US$0.53 from a year earlier.
Intel president and CEO Paul Otellini said Intel performed well in the first quarter amidst what he called “market softness”.
In April, Gartner reported that the traditional PC market is expected to decline 7.6pc in 2013 as the proliferation of lower-priced tablets and their growing capabilities accelerate the shift away from PCs. Still, Otellini said he is excited about what lies ahead for Intel.
“We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter,” Otellini said.
“We are working with our customers to introduce innovative new products across multiple operating systems.
“The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace.”