Intel Quarterly: Hard on Servers, Happy for Mobility

The chip maker's financial data continue to be relatively stable, despite falling revenues for several major divisions - and with impressive growth for the Israeli subsidiary

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Is the product and price war against Intel Is starting to make its mark more clearly? The company's financial report for the second quarter of 2019 certainly provides evidence of this with slight and uncommon declines in revenue from several major divisions.


Intel reported revenues of 16.5 billion and net income of 4.2 billion in the three months that ended in early July - and although this is an increase compared to the first quarter of 2019, this is a decrease of 17 in profits compared to the same period last year, which is the best and most accurate reference point For this period of time.

Continues to make huge profits - but these are no longer the constant highs that we have become accustomed to receiving from it in the past

Home Computing Division Continued to be responsible for the largest share of revenue with 8.8 billion and even managed to provide 1 percent more revenue than last year, with an increased average purchase amount that successfully erased a slight decline in the number of processed products sold - but the situation is fundamentally different in the company's second-largest server division Of them all.

The home market continues to smile at the company, for the time being, with more and more purchases of premium and expensive premium models

Sales of Xeon processors shrunk by 12 in the second quarter of 2019 compared to the same period last year, and although there is no official reference to this, To the modern and competitive EPYC processors AMD's category has an impact on the situation. Is it possible to launch this Ryzen 3000 series in the home market Will bring about a similar phenomenon later on? We may find out the answer in about three months from now.

The world of server products has begun to suffer significantly in terms of demand - and it is not certain that this trend will reverse anytime soon

The non-volatile memory division (NAND chips) continues to be unprofitable for Intel, and the FPGA solutions division has seen a drop in revenue - but a little bit of satisfaction this quarter comes from the IoT and Internet Which it acquired in a record-breaking deal In 2017. These two divisions managed to record double digit growth in the last quarter due to increased demand for their products, and despite the fact that their revenues are very modest relative to the core areas of This is a very interesting development that may hint at changes in the technological focus that will be reached in the not too distant future.

The financial situation of Continues to be very solid and quality - although it may need to invent innovative areas of business to ensure long-term continuity

Intel's forecast for the third quarter of 2019, which will traditionally be stronger than the two preceding years, speaks of revenue of 18 billion - which will also constitute a significant decrease of 6 per cent compared to record revenues of 19.2 billion recorded by the manufacturer In the third quarter of 2018. The Ice Lake processors will save the situation and bring the company to new heights? For now, it's not quite in sight.


All key metrics of Are likely to suffer slight declines in 2019 - but the really big question is what are the chances of a rebound with the advent of the 10 era in the high-pressure nanometers