Chip maker Intel has reported a second quarter profit of $2bn, down 29% from a year ago, roughly in line with average analysts’ estimates.
Revenues were also down to $12.8bn, slipping 5% on last year’s second quarter figure and just missing analysts’ forecasts of $12.9bn.
This is the fourth consecutive quarter of declining sales for the company, with sales suffering as the market has switched from traditional PCs to other form factors using chipsets from competitors.
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According to Gartner Research, global PC shipments fell 10.9% to 76 million in the second quarter.
Consumer and business PC demand declined by 23.5% and 7.6% respectively, Gartner found.
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Despite positive initial forecasts for the year, Intel has now reduced its expectations and plans to focus on selling chips for use in tablets and smartphones in a bid to regain lost ground.
Intel's new chief executive Bryan Kraznich told investors that it plans to flood the tablet market with inexpensive devices, and that building "ultramobile" chips is now the company's highest priority.
As part of that strategy, Intel will focus on its Atom line-up of mobile processors, but the company said PCs will continue to be core to the company's business.
Intel said its current quarter sales will be $13bn to $14bn, in line with analysts’ expectations of $13.72bn.
For the full year, Intel said it expects its revenue to remain flat, down from an earlier forecast of a low single-digit percentage increase.