Intel delivered record number of notebook processors in last quarter
Intel’s shipments of notebook processors rose 54 percent in the first quarter from last year. It was a record amount, but the average selling price per notebook processor did fall.
The surge in notebook chip shipments has been driven primarily by the popularity of entry-level and school laptops, including Chromebooks. They usually have less powerful processors, which explains the 23 percent decrease in the average selling price of Intel’s notebook chips compared to the first quarter of last year. Turnover from notebook processors nevertheless increased by 19 percent.
Overall, shipments of processors for PCs, ie both notebooks and desktops, increased by 38 percent. Desktop processor sales fell by 7 percent and the average selling price fell by 5 percent. The Client Computing Group’s quarterly revenue, which includes sales of notebook and desktop chips, rose 8 percent to $10.6 billion.
The quarterly figures for Intel’s data center division were less rosy. Sales fell 20 percent to $5.6 billion. Intel delivered 13 percent fewer data center chips and the average selling price of processors for data centers also fell, by 14 percent. Intel blames the declines on the corona crisis and also reports that it has high costs due to the ramping up of 10nm chip production and research & development.
Furthermore, data centers are said to be saturated by previous deliveries, but Intel says it has hit rock bottom and expects improvements for the second quarter. Pat Gelsinger that the volume of such chips would still be modest.
More 10nm than 14nm in the second half of 2021
Gelsinger also reported that the development of the 7nm process is going well. In the coming weeks, the tape out of Meteor Lake should take place, Intel’s first 7nm processor to be released in 2023. The 10nm production would also be on schedule. Gelsinger: “As a sign of the improvements, we qualified Tiger Lake-H at 10nm ahead of schedule and we expect the volume of 10nm chips to exceed 14nm in the second half of the year.”
Gelsinger emphasized in the explanation of the figures, which can be read at Seeking Alpha, that Intel is in the process of getting its product roadmap back in order and the IDM 2.0 strategy unveiled in March should ensure further growth. Intel will use this to produce chips for third parties and build new fabs, including in Europe.
Intel’s total quarterly revenue fell 1 percent to $19.8 billion, or $16.4 billion. Profits fell by 34 percent to 3.4 billion dollars, or 2.8 billion euros.