Intel provided mixed Q1 results for its business units - server chip sales were healthy, mobile sales were weak, and PC sales were in between.
Intel now has different industry groups reporting, so the PC Client Group (PC CPUs + connectivity and living room chips) saw its sales fall 1.5% Y/Y to $7.94bn (62% of revenue). The Data Centre Group (server/networking/storage chips) saw its sales rise 11% to $3.09bn.
Intel attributed a 61% Y/Y drop in mobile division revenue to weaker mobile chip sales - the business faces tough competition from Qualcomm and MediaTek - and contra revenue payments to OEMs adopting its tablet CPUs. Intel expects contra payments to decline, if not end, in 2015, and is still aiming for 40 million 2014 tablet CPU shipments after shipping 5 million in Q1. IDC expects 2014 industry shipments of 260.9 million. INtel is hoping its new products for both highend and lower-price models will turn things round.