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Friday, 17 July 2015

Intel earnings hidden behind what

Recently, Intel released as of June 27 of fiscal year 2015 second quarter earnings. The report shows that Intel's second quarter revenue of $ 13.2 billion, down 5%; net profit of $ 2.7 billion, down 3%, despite the decline in revenue and profit, but because of its reach in the industry had expected, Intel's share price but rise. However, some of the data by analyzing earnings and Intel executives of related words, we believe that Intel's strategy is quietly changing.   Due to its mobile chip business before the merger with PC chip business, so the industry's concern to Intel in the mobile (such as tablets and smartphones) chip revenues and profits we do not know.However, only $ 7.537 billion from the PC chip business revenue disclosure of earnings decline 14% (previous year PC chip business fell only 8%) and IDC and Gartner had released the second quarter of the global PC market sharply Look decline, given its mobile chip business Intel's revenue contribution is minimal, not to mention what the profit of.   The industry knows that Intel adopted last year, heavily subsidized and ultra low-cost tablet PC market storm strategy and achieved sales of more than 4,000 million units, but this year, according to recent reports Digitimes, Intel Atom chip Android tablet shipments this year dropped to 10.8 million units. Because based on the Intel Atom chips are mostly Android tablet, can be judged, Intel will have fallen sharply in the Tablet PC chip shipments this year compared with last year, combined with Intel said last year to reduce the Tablet PC manufacturers subsidy policy can be judged,this year Intel Tablet PC chip market, mainly due to lower shipments of large lies reduce subsidies. This is also reflected from one aspect, the Intel chip in the mobile market has not really give OEM manufacturers and market recognition (mainly by money to drop out) , at the same time, in view of the tablet in the large-screen phone impact growth has started to slow down, Intel again entangled in this market with high subsidies has lost future strategic significance and real business value.   (Disclaimer: This article represents only the opinion of the authors )

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