The prices of low-cost PCs may fall again, as Intel said on Thursday that the lack of "small-core" microprocessors will ease. Intel is still facing a huge range of flash memory, which will help keep prices of SSDs and other flash-based products down.
Intel's Q2 results, reported Thursday, exceeded its own expectations. Intel profits fell 17 percent to $ 4.2 billion, while revenue fell by 3 percent to $ 16.5 billion. Partly due to stock and production skin when the company switched to the 10nm products, including Ice Lake, which Intel had previously sent to.
Intel now has two plants of 10 nm that produce silicon, said CEO Bob Swan. Intel's total production was reduced while these factories went up, which the company described in previous revenue calls. According to Swan, Intel lost a "small portion of the share" during the second quarter, when the company prioritized its "marginal" microprocessors with higher margin. During that time, Swan said, Intel couldn't meet the demand for its cheaper pieces.
Although Swan said that Intel's second-quarter performance was better than its own expectations, Swan said he was still concerned about the Trump administration's ongoing tariff with China, as well as the uncertainty surrounding the Department of Commerce's list of devices. During the quarter, the US government put Huawei, a large Chinese technology company, on the list of trading entities, banning mainly US companies doing business with it. Later five Chinese superdate companies were included in the list. Swan didn't name Huawei or the other companies by name, but he said uncertainty about the China situation "makes me a little more anxious," Swan said.
Intel's PC-centric client calculation group still represents the majority of Intel's revenue, with the division reporting 1 percent more revenue, $ 8.8 billion, than the same quarter a year ago. Intel's Data Center Group reported revenue of $ 5 billion, down 10 percent in the face of stronger competition from the AMD and Epyc chips. Intel also owns a number of smaller businesses, including the automated mobile group MobileEye ($ 201 million in revenue, up 16 percent), and its Programmable Solutions Group, which had $ 489 million in revenue, down 5 percent.
Surprisingly, Intel sold its 5G smartphone modem business to Apple for about $ 1 billion, after Apple was forced to negotiate with Qualcomm because of Intel's reported failure to meet production targets.
Intel's swan said nothing about Intel's ongoing efforts to develop their discrete graphics chips, let alone reference to AMD or Nvidia, the main rivals. AMD, engaged in a GPU dog fight with Nvidia and in CPUs with Intel, reports on July 30.