Intel’s quarterly revenue falls due to Apple’s move to M processors

Intel’s quarterly sales fell 7 percent, mainly because of lower consumer product processor sales. According to Intel, this is partly because it supplies Apple with fewer processors and modem chips.

The quarterly revenue of Intel’s Client Computing Group, responsible for the Core processors, among other things, fell by 13 percent to 9.3 billion dollars, converted 8.82 billion euros. The company attributes this decline to declining shipments of CPUs and modem chips to Apple. That company uses the self-designed and ARM-based M-system-on-a-chips in more and more of its products.

Intel also attributes declining consumer chip sales to a decline in demand for entry-level computers and laptops for the educational market. That demand increased sharply at the start of the corona crisis, but that trend has reversed. According to Intel, the decline is further because manufacturers have eliminated their chip inventories last quarter, and therefore placed relatively few new orders.

Intel’s notebook chip revenue fell from $7 billion last year to $6 billion in the last quarter. Quarterly revenue from desktop processors fell from $2.77 billion to $2.64 billion. The decline was partly offset by a 22 percent increase in data center chip revenue. Intel’s revenue from the Datacenter and AI Group was $6 billion. Intel also reported revenue from its Foundry division, producing chips for third parties. That turnover was $283 million. Intel is committed to expanding this division. Intel’s total quarterly revenue fell 7 percent to $18.4 billion.