Intel’s first quarter result offer more evidence of Windows PC decline

“Intel reported another decline in chip sales for PCs as part of its first-quarter results on Tuesday, with revenue from that business falling 6% compared to a year ago,” James O’Toole reports for CNNMoney.

“The news comes just a few days after research firm IDC reported that worldwide PC sales plunged 14% last quarter — the worst yearly decline since IDC began tracking the data in 1994,” O’Toole reports. “Intel’s overall revenue fell 2.5% compared to last year, to $12.6 billion, and its net income dropped 25%, to $2 billion.”

O’Toole reports, “Intel’s results come as the PC industry continues to struggle against the rise of tablets like Apple’s iPad and other mobile devices. Intel and its rivals have tried to innovate their way out of their sales slump, but so far to little avail.”

Read more in the full article here.

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16 Comments

  1. Intel has tried to arrest the decline of PC sales by offering $300 rebates to manufacturers of ultrabooks, except the MacBook Air which ironically kickstarted the segment. But Intel has always treated Apple as the red headed stepchild.

    What Intel was counting on was the persistence of the WinTel duopoly but didn’t reckon on two things. Steve Jobs’ vision of an iPad-centric computer that would displace the netbook and MS shooting itself in the foot with the unfriendliest and user hostile OS in the world, Windows 8.

    The WinTel duopoly can’t live with the W8 millstone around its neck.

    1. I don’t get the hate on Windows 8 any more than I did the hate on Apple Maps. I was at a friend’s house and she was showing off her Windows 8 laptop, and … I’ll be honest, it looked like it brought a lot of new and good stuff to the table. Is it all good? No. Would it take a while to get used to? Yes, and certainly longer than it took to make the transition from Win7 to OS X. But any major overhaul takes some getting used to.

      Will I ever buy a Win8 computer? No chance in hell. But I’m not going to go out of my way to trash it more than it deserves.

      1. Windows 8 is a usability nightmare that tries to meld MS’s vision of a single unified UI approach to mobile and desktop computing. It tries to bridge two distinct categories of computing but does neither one of them very well.

        I don’t want to navigate a desktop computer using a touchscreen when a mouse or trackpad and keyboard combination does the job a hundred times better.

        MS is not addressing usability issues but wants to shove its dictates down its users’ throats. There’s no good reason why the desktop and mobile UI should be wedded together and MS is doing it because it wants to force its cadre of developers to code for its moribund mobile platform by leveraging on its desktop dominance.

        The Windows 8 hate is well justified. It’s a half assed approach that tries to be the jack of all trades but is the master of none.

        1. Fair enough. That’s not quite what I experienced with my observation, but it was only one person for a short period of time, so I can’t really form a good opinion. But from what I saw, she did it effortlessly and it worked great.

          I would say that Microsoft is thinking along the right lines. But their execution was off. (Wait, isn’t it redundant to use “Microsoft” and “execution was off” in the same thought?) But constantly crapping on it doesn’t seem justified, at least to me.

          Then again, what do I know? (Answer: Not much.)

          1. Interesting that you said you saw it and not that you used it.
            I was actually reserving judgement based seeing some early demos at an industry event hosted by MS. The demo (done by MS demo specialists) looked interesting. It was later when I actually tried to use it that I realized what a colossal failure it truly is.
            Win8 is not getting any hate it doesn’t richly deserve.

            1. It wasn’t my laptop, and like I said, I imagine it takes a lot of getting used to. But seeing a friend, who is by no means tech-savvy, use it in a few day-to-day functions is a lot more telling than demo experts whose job is to make it look good. haha. But again, it was a brief time for a few tasks, so it doesn’t mean much.

    2. Thats Intel’s problem in a nutshell, they are for better or worse hogtied to Windows. Worse is they had plenty of warning and should have seen it coming. M$’s problems predate W8 & Vista, they started with a fat, lazy monopoly trying to ride on XP for nearly a decade and Intel should have been prepared.

      That’s my Monday Morning Quarterback view of the situation.

    1. So, What is an innovation? Oh! Santa Clarus!!!
      What item of modern computing would you allude the monica “Innovative”?
      For the ignoranti such as myself, a little explanation as to were you are coming from and going with such a statement might help one such as I understand you better.

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