In the light of a recent report claiming that the sales of personal computers declined all over the world in the first quarter of this year, Intel, a force to reckon with in the computer industry, has said that it is expecting an eight per cent decline in its revenue for the current quarter. Moreover, the company has also made cuts to its expenditure plans for the year 2013.
IDC, a leading tech research firm, recently released a report claiming that owing to increase in demand of smartphones and tablets, PC sales all over the world fell 14 per cent in the first quarter, which was almost double to its prediction of a 7.7 per cent decline. To add to the troubles, it was predicted that PC sales would continue to decline in the days to come.
Intel is a dominant force in the PC industry. A household name in almost the entire world, Intel’s has reached a wide audience as its products are being extensively used since many years by millions of people. However, the dynamics of the market have now been changed and technology has provided a chance to PC users to carry portable gadgets. Smartphones and tablets have taken over the trends and now they are considered replacement for PCs.
In such a case, it does not come as surprise to see Intel foreseeing a decline in its revenue for the current quarter. That noted, it is pertinent to take a look at Intel’s plans for the year. The company is planning to bring some new products and thinks that they will help revive its profit. Officials at Intel are of the view that they can get good response from the market in the second half of the year, though many analysts disagree. Reuters quoted Stacy Rasgon, an analyst at Bernstein Research, as saying about Intel’s hopes for securing better revenue later in the year:
“That scares the hell out of me. They are holding to the same ultra-bullish forecast they gave before. They are presumably pretty bullish on the new products they are planning.”
Meanwhile, Intel has said that it will reduce its capital spending for the year 2013 from $13 billion to $12 billion.
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