Intel's Profit Slips on Weak PC Sales

Yesterday, Intel reported its fourth quarter results. The Santa Clara based company delivered results that were slightly better than feared but at the same time admitted to facing difficult times.

As the world’s largest maker of semiconductors, which supplies chips to most of the world’s PC manufacturers, Intel is hurt by the erosion of the PC market. According to research firm Gartner, global PC shipments declined 4 percent in 2012, and the lukewarm reception of Windows 8 didn’t help the struggling industry either.

Intel currently generates 64 percent of its revenue selling PC chips and the company’s efforts to supply smartphone and tablet makers, hasn’t been overly successful so far.

At $13.9 billion, Intel’s fourth quarter revenue came in 3 percent lighter than last year, while profits dropped 27 percent to $2.5 billion. Intel offered a bleak outlook for 2013, as the company projects lower revenue and a further decline of profit margins.