Intel's mobile communications revenue freefalls

Intel’s mobile and communication revenues plummet 85% in 2014 full-year financials but PC and datacentre earnings on the up

Intel’s mobile and communication group saw its revenue plummet by 85%, according to the company's full-year financials for 2014.

The mobile and communications group reported revenues of $202m, down 85% from 2013.

"There is more to do in 2015. We'll improve our profitability in mobile, and keep Intel focused on the next wave of computing," Intel CEO Brian Krzanich said.

While the volume of notebook chips Intel sold rose by 11% year-on-year, average selling prices were down 7% from 2013.

The company's PC client group posted revenue of $34.7bn, up 4% from 2013. Again, while volume was up 8% from 2013, platform average selling prices were down 4% over the same period.

The company’s internet of things division showed the biggest growth compared with 2013, with a revenue increase of 19% to $2.1bn.

The datacentre group reported revenue of $14.4bn, up 18% from 2013. Intel said datacentre platform volume was up 8% and average selling prices were up 10% over the same period.

For Q4 2014, Intel reported PC client group revenue of $8.9bn, down 3% sequentially and up 3% year-on-year.

In Q4, the datacentre group made $4.1bn in revenue, up 11% sequentially and up 25% year-on-year.

Krzanich said: "We met or exceeded several important goals: reinvigorated the PC business, grew the datacentre business, established a footprint in tablets, and drove growth and innovation in new areas."

Intel’s datacentre and PC shipments are tied to the success of the PC and x86 server market. Worldwide PC shipments totalled 83.7 million units in the fourth quarter of 2014, a 1% increase on the fourth quarter of 2013, according to preliminary results by Gartner. The market analyst firm said the results indicate a slow, but consistent improvement following more than two years of decline.

On the server side, Gartner reported a slight growth of 1.2% in x86 server shipments. Errol Rasit, research director at Gartner, said: “RISC/Itanium Unix server shipments declined 17.1% globally for the period and declined 8.0% in supplier revenue compared with the same quarter last year." Itanium is Intel’s high-end 64-bit datacentre processor, and questions remain whether the chipmaker will continue to support this expensive architecture, especially given that Oracle's price list gives no per core discounting on Itanium chips.

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