Apple’s departure hurts Intel – ICT news

Intel records a revenue loss of seven percent. This decline is largely due to the departure of Apple as a customer, but the regression after the coronavirus and the chip crisis also weighed on the results.

Broadly speaking, things are not going badly for Intel. Its first-quarter revenue was $18.4 billion, down seven percent from the same period last year, but its net profit was $8.1 billion. dollars, up 141 percent.

However, these figures should be qualified. For example, the drop in revenue only concerns the Client Computing Group (CCG), Intel’s largest division with its $9.3 billion in revenue (13 percent less than ‘one year ago).

Other departments such as the Datacenter and AI Group, Network and Edge Group, Accelerated Computing Systems and Graphics Group and Mobileye grew by 5 to 23 percent. The Intel Foundry Services (IFS) division even grew by 175 percent, although this is due to the fact that this department was only created last year and therefore could only grow.

The fact that the Client Computing Group has regressed is due to several reasons. Intel thus indicates that it has provided fewer chips to Apple, which announced in 2020 that it wanted to produce its own Apple Silicon chips based on the Arm architecture. Following the gradual discontinuation of its old devices, Apple therefore buys fewer chips from Intel.

Fewer sales to Apple, but also in education

In addition, CFO Dave Zinsner reports that the modem business has seen sales decline, and device makers have mostly used their remaining inventory to reduce orders. It should also be noted that there is less demand on the consumer market and on the education market. Although the latter two markets experienced a temporary recovery during the corona crisis, they are now stagnating again. Market analysts, such as Gartner, had already indicated this previously. The average selling price of CPUs, however, is a quarter higher than a year ago.

Separately, Intel says Intel Foundry Services (IFS, the division that produces chips for other companies) currently has thirty chips in test. The recent acquisition of Tower Semiconductor will further strengthen this department.

Broadly speaking, things are not going badly for Intel. Its first-quarter revenue was $18.4 billion, down seven percent from the same period last year, but its net profit was $8.1 billion. dollars, up 141 percent. However, these figures should be qualified. For example, the drop in revenue only concerns the Client Computing Group (CCG), Intel’s largest division with its $9.3 billion in revenue (13 percent less than a year ago). Other departments such as Datacenter and AI Group, Network and Edge Group, Accelerated Computing Systems and Graphics Group and Mobileye grew by 5 to 23 percent. The Intel Foundry Services (IFS) division even grew by 175 percent, although this is due to the fact that this department was only created last year and could therefore only progress. The fact that the Client Computing Group has declined, is due to several reasons. Intel thus indicates that it has provided fewer chips to Apple, which announced in 2020 that it wanted to produce its own Apple Silicon chips based on the Arm architecture. Following the gradual discontinuation of its old devices, Apple is therefore buying fewer chips from Intel. In addition, CFO Dave Zinsner reports that the modem business has seen its sales decline, and that device manufacturers have mainly used their remaining stocks in order to reduce their orders. It should also be noted that there is less demand on the consumer market and on the education market. Although the latter two markets experienced a temporary recovery during the corona crisis, they are now stagnating again. Market analysts, such as Gartner, had already indicated this previously. The average selling price of CPUs, however, is a quarter higher than a year ago.In addition, Intel says that Intel Foundry Services (IFS, the division that produces chips for other companies) has currently thirty chips in test. The recent acquisition of Tower Semiconductor will further strengthen this department.

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