Intel claims to see little effect from AMD Ryzen

Intel, when presenting its quarterly results, made the claim that it saw or expected nothing unusual in terms of competition. The chip manufacturer did this in response to the question whether AMD’s Ryzen had an effect on the quarterly figures.

Intel CEO Brian Krzanich replied that there is always some competition in the market: “For the first quarter of this year and in our forecast for the second quarter, we don’t see anything unusual compared to what we normally see.” This is stated in the transcript of the notes to the quarterly figures of Seeking Alpha.

Intel did indicate that it expects the average selling price of processors to fall slightly during the year, which indicates that the company expects to sell fewer high-end chips. Demand for high-end 2-in-1s, workstations and gaming products has so far grown faster than the company expected.

Intel’s Client Computing Group, which includes consumer processors, recorded quarterly revenue of $8 billion, or 7.4 billion euros, 6 percent higher than in the same period last year. The revenue of the Data Center Group, which includes the Xeons, increased by 6 percent, which was less than expected, while the Internet of Things Group recorded an 11 percent increase in revenue, but still remains a modest part at $721 million. The largest revenue increase was in the Non-Volatile Memory Solutions Group, with memory division revenue increasing 55 percent to $866 million, helped by continued high prices and high demand for memory.

Overall, Intel’s revenue rose 2.6 percent to $13.53 billion. Net profit fell from $2.71 billion to $1.33 billion. However, that decline was attributable to one-time costs of $1.41 billion related to the massive restructuring, which will see 12,000 job cuts. Half of this reorganization has now been completed.