[opendtv] Re: EE Times: PC Sales Raise Intel’s Q2
- From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Thu, 27 Jul 2017 23:54:16 -0400
On Jul 27, 2017, at 9:53 PM, Manfredi, Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:
Craig will be stunned that Intel's PC processor sales rose 9 percent from the
same time last year, and 12 percent in the quarter. That's in dollars. Where
are they going?
Stunned? Not exactly.
The wonderful (or terrible) thing about these quarterly earning reports is that
they are based on year over year comparisons. Growth is ALWAYS better than a
decline, but it is relative to how the company performed in the same quarter in
the previous year.
Apple was the victim of their own success after they introduced the iPhone 6
and 6 plus in 2015. There was a huge surge in sales in the 4th quarter of 2015,
and several quarters thereafter. The comparisons for 2016 were either flat, or
in one quarter slightly down. The stock tanked for a year, until it became
obvious that the iPhone 6 caused a spike that disrupted the trend line and YOY
comparisons in 2016.
So, to look at these results in the proper perspective, you must look at how
Intel performed in the 2nd quarter of 2016. This is from a report released this
evening by Fortune magazine:
http://fortune.com/2017/07/27/intel-quarter-raised-forecasts/
Profit in the prior-year quarter was hurt by a charge of $1.41 billion related
to Intel's cost-cutting drive.
Revenue rose to $14.76 billion from $12.53 billion.
The YOY comparison looks good, in large part due to the poor quarter Intel had
a year ago. The fact that they raised revenue estimates for the full year is
probably more significant - they believe that sales will continue to improve.
"While volumes were only up in modest single digits, sales continue to shift
toward gaming PCs and thin-and-light notebooks that command a premium."
Hey, even a modest single-digits sales volume increase beats a decline. We
have read predictions that 2017 would turn that PC trend around.
Yup. IDC and Gartner have been predicting a turn around for the past five
years. In January Gartner predicted that PC sales would be flat in 2017 -
that's certainly better than another decline.
Regards
Craig
Other related posts:
