Prices of low-end PCs might fall as soon as once more, as Intel mentioned Thursday that its scarcity of “small-core” microprocessors is easing. Intel nonetheless faces an oversupply of flash reminiscence, which ought to assist maintain down the costs of SSDs and different flash-based merchandise.
Intel’s second-quarter outcomes, reported Thursday, exceeded the corporate’s personal expectations. Intel income have been down 17 p.c to $4.2 billion, whereas income fell barely by three p.c to $16.5 billion. In half, that’s due to stock and manufacturing bumps as the corporate transitioned to its 10nm merchandise, together with Ice Lake, which Intel has mentioned beforehand is now transport.
Intel now has two 10nm factories manufacturing silicon, chief government Bob Swan mentioned. Intel’s general manufacturing slowed whereas these factories ramped up, which the corporate described in earlier earnings calls. According to Swan, Intel misplaced a “little bit of share” through the second quarter, as the corporate prioritized its higher-margin, “big core” microprocessors. During that time, Swan mentioned, Intel was unable to fulfill demand for its cheaper chips.
In 2021, Intel expects to transition to the 7nm manufacturing course of node, an aggressive change of tempo that will put Intel again on the tempo of change outlined by Moore’s Law, Swan mentioned. By his estimation, Intel’s 7nm course of will be aggressive with the 5nm course of expertise he expects Intel’s rivals to be utilizing by then.
Though Swan mentioned that Intel’s second-quarter efficiency was higher than its personal expectations, Swan mentioned he’s nonetheless nervous by the Trump Administration’s ongoing tariff was with China, in addition to the uncertainty in regards to the Department of Commerce entity listing. During the quarter, the U.S. authorities positioned Huawei, a serious Chinese expertise firm, on the Commerce entity listing, basically forbidding U.S. firms from doing enterprise with it. Later, 5 Chinese supercomputer companies joined the listing. Swan didn’t identify Huawei or the opposite companies by identify, however he did say that uncertainty over the China state of affairs “makes me a little more anxious,” Swan mentioned.
Intel’s PC-centric Client Computing Group nonetheless represents nearly all of Intel’s income, with the division reporting 1 p.c extra income, $8.Eight billion, than the identical quarter a yr in the past. Intel’s Data Center Group reported $5 billion in income, down 10 p.c within the face of stronger competitors from AMD and its Epyc chips. Intel additionally owns a variety of smaller companies, together with its automonous driving group, MobileEye ($201 million in income, up 16 p.c), and its Programmable Solutions Group, which recorded $489 million in income, down 5 p.c.
Unsurprisingly, Intel offered off its 5G smartphone modem enterprise to Apple for about $1 billion, after Apple was pressured right into a provide take care of Qualcomm due to Intel’s reported incapability to fulfill production targets.
Intel’s Swan didn’t say something about Intel’s ongoing work…