With smartphone and tablet sales through the roof, and lagging laptop sales that don’t show signs of resurgence any time soon, some companies are taking the hit—namely, PC-chip companies. Advanced Micro Devices (NYSE: AMD), Texas Instruments (NASDAQ: TXN), and Intel (NASDAQ: INTC) all have bad news for investors: the fourth quarter numbers weren’t great. For many, this shouldn’t be a surprise.
Now, let’s look at Intel. Fourth quarter profit numbers revealed a 27% slide, another sign of lagging PC demands. Formerly so successful due to their market dominance in the PC chip field, Intel is now in a bind and facing the question about what to do to adapt to the way of the world. A shift in consumer interest towards tablets and smartphones has sent Intel spiraling downwards.
Hopes that Microsoft’s new Windows 8 devices would spur sales haven’t exactly followed through. Sales numbers for the new devices haven’t shown enough to revive the PC market for Intel. So, what now?
Intel revealed that revenue from its PC chip division sank 6% from a year earlier, pulling down total revenue 3% at a time when the company usually releases its best results. Intel predicts a further 6% slide in the current quarter.