Intel lifted by data centers, as PC market flounders due to demand
U.S. technology giant Intel said Tuesday its profits edged higher in the first quarter, as gains in its data center operations help offset weakness in the personal computer market.
Profit for the quarter rose three percent from a year earlier to US$2 billion, while revenues were flat at US$12.8 billion.
Intel has long been the dominant maker of chips for PCs but has been diversifying as the industry moves toward mobile and wearable computing.
The latest results, which show weakerthan-anticipated demand for PCs, “reinforce the importance of continuing to execute our growth strategy,” Intel chief executive Brian Krzanich said in a statement.
The results showed an 8 percent yearover-year drop in revenue at Intel’s client computing unit, which includes the PC chipmaking business. From the fourth quarter, the drop was a steep 16 percent, following the end of an upgrade cycle for many PC users.