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IoT, data services help Intel hit revenue expectations

While chip maker Intel hit expected revenue projections in the fourth quarter, its sales for 2015 took a bit of a hit thanks to weakening PC demand.

January 15, 2016

While chip maker Intel hit expected revenue projections in the fourth quarter its sales for 2015 took a bit of a dip thanks to less consumer PC demand.

The semiconductor market leader hit $14.9 billion in sales for the quarter, according to EE Times, which beat expectations of $14.3 billion and reported a net income of $3.6 billion, which also exceeded street expectations.

Yet sales for the full year were down about 1 percent, compared to 2014, hitting $55.4 billion. The decline was seen within Intel’s client computing group, and revenue took a dip in services and software compared to 2014.

Yet gains were achieved in the company’s data center and Internet of Things segments. Its IoT business enjoyed a 7-percent increase from 2014, hitting revenue of $2.3 billion.

"Our results over the last year leave me increasingly confident in our strategy," said Brian Krzanich, Intel CEO, according to EE Times. "While our outlook for the first reflects some caution about overall demand, particularly in China, we continue to expect solid growth in the business in 2016."

It’s been a busy year for Intel as the chip maker bought Altera Corp, a programmable logic maker, for $16.7 billion and debuted 3D XPoint memory technology, which Krzanich said will be a "game changing technology moving forward." It recently bought bought drone maker Ascending Technologies.

Intel projects first-quarter sales will land between $13.5 billion and $14.5 billion. and that 2016 should be very similar to the past year.

"Our 2015 results demonstrate that Intel is evolving and our strategy is working. This year, we'll continue to drive growth by powering the infrastructure for an increasingly smart and connected world," stated Krzanich, according to Forbes.