Intel Suffers Double-Digit Revenue Decline in Q4 2022

upstart writes:

Intel's two biggest business units were hit hard during the last three months of 2022:

Poor sales of PC and server chips caused Intel's revenue for the fourth quarter of 2022 to dive 32% year on year, leading to a $664 million net loss for the quarter.

The outlook for Q1 of 2023 is not an optimistic one either, with CEO Pat Gelsinger telling analysts in a call, "Our results and our Q1 guidance are below what we expect of ourselves."

However, he said that Intel is "working diligently to address the challenges brought on by current demand trends" and the company continues to have confidence in its long-term plans and trajectory.

Intel took the biggest hits across its two largest business units, with the chip maker's Client Computing Group (CCG) and Data Center and AI group (DCAI) posting year-on-year revenue drops of 36% and 33%, respectively.

The CCG business unit, which makes desktop and laptop CPUs, posted $6.6 billion in revenue, down from $10.3 billion a year earlier. This freefall can largely be attributed to a significant and ongoing slump in the PC market. A report from IDC found that sales of PCs had fallen by 28.1% during the same period, findings that were echoed by research firms Canalys and Gartner, whose estimates showed a 29% and 28.5% drop, respectively. Gartner reported that this was the steepest decline since it started tracking the PC market in the mid-1990s.

This trend is likely to carry on into the first quarter of 2023, Gelsinger said on the call with analysts.

Read more of this story at SoylentNews.