Windows 10 will not be a game changer for Intel PC Chips.
Intel Corporation is one of the most prominent names in the tech sector that governed a substantial chunk of their operating income by selling personal computer chips. So now the personal computer market is about to undergo a major disruption and Intel has kept eyes on this change which the company and the market will embrace in the times to come.
However, despite INTC earns a good chunk of its revenues from personal computers, the market for such hardware has been declining lately. During the first quarter of FY15, the shipment of personal computers has declined by 5.2 per cent when comparing the previous year performance reports Gartner- the research firm.
Moreover, the most prominent decline which Intel faced was also from this particular division. This is an alarming state for the company since Personal Computers were their core consumer base. So now the company will now have to remove $1 billion from its forecasted revenues due to the negligible demand of personal computers.
However, at this point Intel does not expect that the upcoming Windows 10 will be a game changer for them or the personal computer industry.
“We are going through another transition, Windows 10 upgrades…We’re seeing some quarter-to-quarter pushing, but we continue to take a view of our long-term forecast…the PC market should be flat to slightly down mid-single-digits over the long-term,” reports the chief executive officer of Intel Mr. Brian Krzanich on Thursday at the company’s annual shareholders meeting.
However, the CEO was not much concerned about how this might impact the growth of the company in the years to come. He is extremely optimistic and believes that the growth from the company’s data center business will compensate for the losses obtained through a decline in PC sales.
It has been reported that the company’s data center grew almost 18 per cent the previous year which is now likely to become a $14 billion business.
“We look at it as our next big growth engine for the company,” he added.
At this point, the company does not know how the decline in sales of PC chip which actually affect them. From the previous quarter, the company has been under the umbrella of a unified business mechanism known as “Client Computing Group- effectively buying the $4 billion-plus loss it was seeing from its mobile unit.”
So now Intel knows that Windows 10 will not be much of a game changer for them, therefore they need to put more efforts to push its data center business.
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