Intel (INTC) reported earnings Tuesday after the close. The results were within Intel's own guidance given a quarter ago.
First-quarter revenue was down $100 million from the midpoint of guidance, gross margin was at the low end of guidance.
Second-quarter guidance is marginally better than first quarter results, which was as expected. The first quarter could have been better if two major customers, Dell (DELL) and Hewlett-Packard (HPQ) weren't completely distracted from the PC business.
Intel has maintained the last half of 2013 will begin a recovery with a 2% increase in revenue for the full year and gross margin recovery to 60% for the full year.
Given that, the second half should be ~$29 billion and 63% gross margins. A couple of $14.5 billion quarters would be new records, so the Intel world isn't falling apart as some pundits are wont to declare.
PC client units were down 6% vs. third party estimates of down 14%. Someday the third parties will surrender and simply wait for the quarterly reports in order to get the numbers right. Why announce gross errors only days before the earnings announcement? I agree with the author of this article that the Osborne Effect has been playing a little mischief in the PC market.