Intel forecast portends weak PC sales

“Top chipmaker Intel Corp. reduced its growth forecast, reinforcing fears that a wavering global economy and a lack of consumer interest are dampening personal computer sales,” Noel Randewich reports for Reuters. “Shaky economies in Europe and the United States and a growing consumer preference for Apple Inc’s iPad tablets have been taking a toll on the PC industry.”

“The world’s leading chipmaker on Tuesday cut its 2012 revenue growth forecast to between 3 and 5 percent, down from a prior forecast of ‘high single-digit growth,'” Randewich reports. “That put Intel’s outlook in line with many investors’ recently reduced expectations and helped cushion a sell-off of its stock.”

Randewich reports, “Fears that global PC sales may be worse than expected have helped push Intel’s shares down about 10 percent since the end of April… Intel’s report came after its smaller rival Advanced Micro Devices last week slashed its outlook for second-quarter revenue on disappointing sales in Europe and China, where economic growth has recently lost some steam.”

“Intel supplies processors for 80 percent of the world’s PCs but it has yet to make significant progress in fast-growing tablets or smartphones, products that use chips based on technology from British-based ARM Holdings,” Randewich reports. “While the tablet market is still small, demand for the devices is growing much more quickly than for PCs. Shipments of tablets including Apple’s iPad are expected to grow 90 percent this year, according to IHS iSuppli.”

Read more in the full article here.

MacDailyNews Take: Yeah, “tablets including Apple’s iPad.” It is to laugh.

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IDC: Apple’s iOS-powered iPad to grow share of tablet market as Android slips – June 14, 2012
Apple’s Mac primed to outgrow Windows PC market for 25th consecutive quarter – July 13, 2012
U.S. Windows PC shipments drop 7%, Apple Mac up 4.3% YOY – July 12, 2012
Gartner: Apple Macs invading the Windows PC-dominated enterprise – June 6, 2012
Apple maintains top mobile PC share in Q112 on 162% iPad growth YOY – May 22, 2012
Gartner: Tablet sales to hit 119 million units in 2012; Apple iPad to lead through at least 2016 – April 10, 2012

17 Comments

  1. Aren’t their cheeks beginning to burn with shame or embarrassment as they persist in pretending that the “tablet” category is not in fact defined by iPad? One senses that they are loath to even mention Apple but must for fear of being dismissed as fools and craven hirelings by even the most casual reader.

  2. How new does a PC have to be to get webmail and web browse? In an economic downturn people don’t replace things as often if what the have still works. Computer, cars, TVs, appliances, wives, etc . . .

      1. See what you did there, that extra minute; from 1102-1103 gave you time to reflect!

        If most people spent an extra minute to CONSIDER and CONTEMPLATE the framework of an article or a fellow persons post, things would be a whole lot better around here.

        Slow down! it’s not a race, ask questions first, then if necessary, shoot.

  3. Vapourware launches of Surface don’t exactly help other manufacturers to sell tablets and ultrabooks. Microsoft’s faked demonstration has effectively frozen the tiny market that was already there and will keep it suppressed throughout the critical next few months, including the college buying and the Christmas holiday buying seasons.

  4. Well, at least Macs still use Intel CPUs…

    At least until the quad-core A6 (or A7) -based MacBook Air come out with the next version of Mac OS (after Mountain Lion or whenever it is no longer “X”). Then, the hurting will REALLY start for Intel.

      1. I don’t think so. The “Mac OS” experience is the GUI (the user interface), not the underlying OS. Did the Mac “as we know it” become dead when Apple switched from PowerPC to Intel? NO, of course NOT… Some had that fear, and it was unfounded. And most would say, the Mac user experience became BETTER.

        I actually believe there will be a single “iOS” as the underlying OS for all Apple computing devices, from iPhone to iPad to Mac to even Apple TV. What will be different is the GUI; each device will have its own distinctive user interface, that is best optimized for it’s purpose.

        The iPhone will have an interface (including voice-control SIRI) that is best for a small touch screen. The iPad will have an interface that is best for a larger (but still mobile) touch screen. The Apple TV will have a highly simplified interface that is best for a simple remote control device controlling a large screen that is across the room. And the Mac will have an interface that is best for a non-touch screen and keyboard/mouse input (or equivalent).

        1. I agree about the Mac OS GUI experience and all, but another round of “your apps don’t work anymore because we changed the processor” is going to be an unpleasant experience, even with a new Rosetta.

          1. Not only that, but Cocoa has finally settled and it has been adopted by all Mac OS developers. Mac OSX can remain very viable for quite some time since it’s taken may years to get to were we are today. Adobe Illustrator is finally a 64 bit OSX cocoa compliant application. By far, the best version of Illustrator ever. That can be said about almost any new modern Mac application in the market today.

        2. The move of OS X to iOS like interfaces and capabilities has virtually nothing to do with the underlying chip set.

          Apple went from 68K chips to PowerPC chips, and it was still a “Mac”. Apple went from OS 9 to OS X (both on the PowerPC chips) and it was still a “Mac”. Apple went from PowerPC chips to x86 chips (Core is just an x86 derivative), and it was still a “Mac”. If **someday** far in the future Apple moves the entire Mac line to ARM based chips, it will still likely be a “Mac”.

          The evolution of the interface and underlying functionalities may change and make it much less “Mac Like” as we’ve known the “Mac”, but that have virtually nothing to do with they chips upon which it is running.

    1. Maybe those who can settle for the capabilities of a MacBook Air can live with the compute power of an A7 chip in a couple years. However, even the majority of those needing the capabilities of a MacBook Pro will not put up with the compute power of an ARM based system for several more years.

      Yes, ARM based processors are getting much more capable. However, they don’t replace the i5 class chips and don’t come even close to the realm of the i7 class chips — and it will be a decade or more before they reach the capabilities of even the current Xeon chips.

      It will be a very, very long time before Apple can have a single OS based upon a single chip set.

      1. Apple can have one “Mac OS” that runs on both ARM and Intel -based Macs. Tiger and Leopard ran on PowerPC and Intel -based Macs, and they both used the same GUI.

        This will not be a “transition” like going from PowerPC to Intel. It will be coexistence. The ARM-based Macs will be superior when mobility and power consumption are key, such as with MacBook Air. Intel-based Macs will be superior when raw processing power and overall performance are key. The future “iOS” will have the flexibility to run as the core OS for both types, with the same familiar “Mac” user interface.

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