Intel Rides Data Center, PC Sales to Record 2014 Revenue

By Jeffrey Burt  |  Posted 2015-01-15 Print this article Print
Intel CEO

The CEO also said the company did well in growth markets, including the IoT, where Intel generated $2.1 billion in revenue for 2014, up 19 percent over the previous year. Intel has partnered with an array of companies like Fossil, Oakley and SMS Audio to put its silicon into such smart devices as glasses, jewelry and earphones, and at the recent 2015 Consumer Electronics Show, Krzanich introduced the tiny Curie development platform for wearable devices.

Krista Macomber, an analyst with Technology Business Review (TBR), wrote in a research note that "Intel, armed with Curie and a focus on establishing early and deep relationships with IoT hardware vendors and application developers, is poised to ride the wave of IoT disruption to create a new business segment that will return long-term growth and complement its dominance of the PC market."

The weak spot continues to be in the mobile computing space, which with full-year revenue of $202 million saw an 85 percent decline over 2013. Both Krzanich and CFO Stacy Smith sounded upbeat about the company's potential in the market, which is dominated by chips based on the architecture from ARM. Intel has qualified the first of its SoFiA systems-on-a-chip (SoCs), which includes an integrated 3G modem.

In addition, 46 million Intel-based tablets were shipped last year, exceeding the chip maker's goal of 40 million. It came at a cost, as Intel lost millions of dollars by subsidizing OEM's use of their chips. However, Krzanich said what it also did was establish Intel as a major supplier for the mobile devices.

Going forward on the mobile side, the CEO said he expects Intel's growth in mobile to pace the overall market trend.

TBR's Macomber said Intel has some challenges, but it doing what it needs to do to ensure success in the future.

"The mobility space will remain an uphill battle for Intel, and the company will face pressures including from Samsung in the IoT space and early pressures from ARM and IBM’s OpenPOWER Foundation on the data center side," she wrote. "However, TBR believes that Intel has positioned itself to secure corporate growth above the IT industry average for the long term."


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