Tablets take toll on Intel

Intel’s president and chief, Paul Otellini, claims the firm made decent progress in 2012, despite the fact net income fell 15% year-on-year.
 
The chip maker’s 4Q and full year 2012 figures reveal that revenues fell at its core PC client and Other Architecture divisions, resulting in net income falling from $12.9 billion (€9.6 billion) in 2011 to $11 billion in 2012.
 
Otellini claims the firm’s “strong product pipeline has us well positioned,” going into 2013, noting it “entered the market for smartphones and tablets, [and] worked with our partners to reinvent the PC,” over the past 12 months.
 
Despite the chief executive’s confidence, Intel’s performance in the fourth quarter of 2012 showed little sign of improvement. Net income fell 27% year-on-year to $2.5 billion, on a 3% fall in revenue.
 
Intel’s chief financial officer, Stacy Smith, defended the results, noting they were in line with the firm’s expectations for the year. He says the fall in revenue is due to lower than expected global GDP growth, and the impact of tablet sales on the PC sector.