Intel shifts investments to data center, tablets and low-power SoCs

Intel CFO Stacy Smith said it will be shifting investments towards the data center, tablets and low-power SoCs.

Intel is forecasting spending for the year at $18.6 billion and expects capital spending of $11 billion both of which are approximately flat to 2013.

This means, Intel will have flat spending growth in 2014.

Intel CEO Brian Krzanich said the company is targeting 40 million tablets to come out with its chips in 2014 against 10 million achieved last year.

“Looking ahead 2014 will be an exciting year as we build further on this new foundation. We have established a goal to grow our tablet volumes to more than 40 million units. As we’re finishing 2013 with more than 10 million units and a strong book of design wins we’re off to a good start,” said Krzanich.

In November, Intel announced its smartphone and tablet road map that will include SoFIA, its first IA SSD with integrated comps.

The company’s revenue was down 1 percent for the year driven by a declining PC payout. The PC Client Group was down 4 percent for the year, but the business began and stabilized and actually grew a bit in the fourth quarter achieving all-time records of i5 and i7 unit shipments.

The desktop business in Q4 grew 11 percent over last year. Data center revenue rose 7 percent. Its Cloud revenue grew 35 percent. Storage business increased 24 percent. Intel’s high performance computing was up 18 percent.

Enterprise fell short of Intel expectations for the fourth quarter and the year as they overestimated the rate of recovery among corporate buyers.

Intel shifts investments to data center, tablets and low-power SoCs

Intel intelligent systems business rose 21 percent, in retail up 16 percent, and transportation up 21 percent in the year. Networking grew 31 percent for the year and rounding out the list, our NAND and (indiscernible) businesses grew 15 percent and 4 percent respectively both achieving record revenue.

Addressing an analyst meet last week, Intel CEO said: “Later this quarter we will launch Ivy Bridge-EX which will bring the largest generation to generation improvement in MT Server performance in 2010.”

(In pix) Intel CFO Stacy Smith said: “We saw strong tablet growth in the back half of the year and inclusive of PC and tablets are unit growth in the fourth quarter was up almost 10 percent from a year ago. We decreased inventory levels by almost $400 million in the fourth quarter and across the worldwide supply chain, inventory levels continue to be whole.”

Intel data center biz

Its data center business continues to see robust growth as a result of the build out of the cloud and the exposure of devices that compute and connect to the internet. Intel is planning to build on the foundation as we launched the Haswell-based Xeon family in 2014.


In 2014, Intel is expecting flat revenue growth. It expects the Data Center Group revenue to be up in the low double-digits and PC Client Group revenue to be down in the mid-single-digits.

pix: fox business

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