Intel makes more money from less shipped PC processors

Intel’s shipments of processors for laptops and desktops fell 2 percent last quarter, but as the average selling price per processor rose, the chip giant was able to generate more revenue from processor sales.

Turnover from notebook processors increased by 8 percent, partly because the average selling price increased by 6 percent. Desktop processor sales increased 3 percent, although the average selling price rose by a whopping 13 percent. The gaming and business systems markets in particular performed relatively well, according to Intel.

Deliveries of PC processors fell partly due to shortages. Intel has to prioritize its 14nm production capacity, focusing on high-end, with a high average selling price. Production capacity constraints will continue through the end of the second quarter, Intel announced during its quarterly earnings discussion.

The turnover of the Client Computing Group, which includes the Core processors, rose by 10 percent to $ 9.8 billion, but that was partly due to the increase in modem sales, which Intel also ranks among this group. Intel makes the modems of the latest iPhone generation. While that revenue rose from $0.9 billion to $1.3 billion, it was $200 million lower than expected, another sign that iPhone sales aren’t going as well as Apple and its suppliers had hoped.

Revenue from Intel’s data center offering also increased by 9 percent. Compared to PC revenues, 48 ​​percent of Intel’s revenue now comes from data center-related products, versus 52 percent from PC.

In total, Intel achieved quarterly revenue of $18.7 billion, 9 percent more than a year earlier, with a profit of 5.2 billion. That revenue was lower than the company itself had expected and Intel also expects financial headwinds for the coming quarters, due to lower demand from China, falling nand prices and slowing capacity expansion by data centers.