Internet of Things and PC sales boost Intel to $2.8bn profits

Intel's PC and Internet of Things divisions both posted profits

Intel has posted profits of $2.8bn for the second quarter of 2014, up 45 percent on the previous quarter, as it sees growth returning in several key areas, including its PC division.

Intel posted revenue of $13.8bn for the quarter, up eight percent on the previous quarter and on the same period last year, while its profit of $2.8bn was also up by 40 percent on the same quarter in 2013.

Several divisions contributed to this growth, including its Data Center Group, up 19 percent year-on-year with revenues of $3.5bn and its PC Client Group, up six percent year-on-year, with revenues of $8.7bn.

The rise in its PC revenues suggests recent reports that the PC market slump is coming to an end are accurate, as businesses especially start to buy new systems due, in part, to the end of support for Windows XP.

Intel will also be pleased with the performance of its Internet of Things Group, with revenues up 24 percent year-on-year, at $539m.

The only division to show major losses was the Mobile and Communications Group, which covers its phone and tablet offerings and posted revenues of $51 million, down 83 percent year-over-year.

Despite this area of decline Intel CEO Brian Krzanich was in bullish mood on the results, claiming it showed the firm’s efforts were paying off, including its tablet push. “Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data centre to PCs to the Internet of Things,” he said.

“With the ramp of our Bay Trail SoC [system on a chip] family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal. In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays.”

Intel recently disclosed more information about its next-generation Xeon Phi processor for high-performance computing (HPC), codenamed Knights Landing, as well as a new interconnect fabric known as Intel Omni Scale.

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