CHIPMAKER INTEL said during a second-quarter earnings call that the company is still "cautious" about the PC market, despite having started shipping the 7th-generation Core chips.
Intel's Q2 earnings were a mixed bag. The firm posted revenue of $13.5bn, up three per cent year on year, but profit was down six per cent to $3.1bn.
The chipmaker's Client Computing Group, which includes devices and wireless connectivity, posted revenue of $7.3bn for the three-month period, down three per cent year on year.
Desktop shipments fell seven per cent, notebooks fell five per cent and tablet volumes dropped a whopping 49 per cent.
Intel's Internet of Things (IoT) division also saw revenues tumble, pulling in $572m for Q2, down 12 per cent on the previous quarter and two per cent year over year.
These aren't the only factors to blame for the firm's profit slump. Intel announced plans in April to cut 10 per cent of staff, or 12,000 jobs, leading to a $1.2bn restructuring charge.
Speculation suggested that Intel will also offload its security business as part of this reshuffle, but this has yet to be confirmed.
Intel CEO Brian Krzanich said: "Second-quarter revenue matched our outlook and profitability was better than we expected. In addition, our restructuring initiative to accelerate Intel's transformation is solidly on track. We're gaining momentum heading into the second half."
The company expects revenues of $14.9bn in the next quarter, give or take a few hundred million.
It wasn't all doom and gloom for Intel in the past three months. The firm's data centre business raked in $4bn, up one per cent sequentially and five per cent compared with this time last year. The Programmable Solutions Group posted revenue of $465m, up 30 per cent on the first quarter.
"While we remain cautious on the PC market, we're forecasting growth in 2016 built on strength in data centre, the IoT and programmable solutions," Krzanich added.
Intel may be cautious about falling PC sales, but the firm has started shipping 7th-generation Core chips to OEMs, suggesting that the first Kaby Lake-powered machines will arrive in the next few months.
Kaby Lake is the successor to Skylake and is built on the 14nm manufacturing process. Intel claimed improvements in performance and power efficiency compared with its predecessor.
Cannonlake, the chipmaker's first 10nm chip, is expected to arrive in the second half of 2017, despite speculation that the launch has been delayed. µ
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