Skip to content
  • Home
  • Emerging Technology & News
  • Computer Help
  • Privacy and Security
  • Reimage Windows Repair
The Reimage Blog
Menu
  • Home
  • Emerging Technology & News
  • Computer Help
  • Privacy and Security
  • Reimage Windows Repair
Facebook Twitter
Home  /  Business  /  Intel lost half a billion dollars last quarter, confirms price increases, Optane shut down
PostedinBusiness Posted on July 29, 2022

Intel lost half a billion dollars last quarter, confirms price increases, Optane shut down

Posted By Shannon.Smith

In brief: Lower PC sales are part of the reason for Intel’s weak performance this past quarter, but the company’s graphics division also saw a massive $507 million operating loss. The chipmaker confirmed rumors that it plans to hike prices for a variety of its chips in Q4 while also mentioning that it will shut down its Optane memory business.

Intel released its second-quarter earnings report for 2022 on Thursday. The company’s revenue dropped by 22 percent year-over-year to $15.3 billion, ending the quarter with a $454 million net loss, a 109 percent drop compared to the $5 billion in profit reported in Q2 2021.

The chipmaker partly blamed the weakening demand for PCs and components caused by the recent decline in economic activity. In the past few years, computers saw a massive spike in demand as the pandemic forced people to work and spend more of their time at home. As a result, many tech companies saw record profits, but this seems to have come to an end, with Intel saying it expects the PC market to shrink by 10 percent this year.

The company confirmed recent reports that it’s planning to increase pricing on a wide variety of products including CPUs, Wi-Fi chips, and controllers. The price hikes will take effect in the fourth quarter, with Intel CFO David Zinsner saying they’ve been suffering from inflationary cost increases that must be passed on to customers at some point.

Intel’s Client Computing Group, which includes consumer CPUs, dropped in revenue by 25 percent YoY but still generated a profit of $1.1 billion. Intel CEO Pat Gelsinger claimed that some of their largest customers are reducing inventory levels at a rate not seen in the last decade. The consumer and education PC markets reportedly saw the biggest drop in processor demand.

Meanwhile, the Accelerated Computing Systems and Graphics Group saw a $507 million loss this quarter. Gelsinger mentioned the company would not meet its internal target of selling four million Arc GPUs this year and also talked about issues the company’s had developing the graphics drivers. “We thought that we would be able to leverage the integrated graphics software stack, and it was wholly inadequate for the performance levels, gaming compatibility, et cetera, that we needed,” he said.

The company also mentioned that it’s shutting down its Optane memory business and ceasing the development of its 3D Xpoint technology, incurring a $559 million inventory impairment charge this quarter. The chipmaker sold its SSD division to SK Hynix in 2020 but originally decided to keep Optane.

Intel confirmed that it sold off its drone business as well, which included about 9,000 drones that provided light shows for various events such as the Olympic Games and Super Bowl halftime shows. According to a report from The Register, Elon Musk’s brother Kimbal bought the division.

However, Zinsner did remain optimistic that the situation could improve later this year. “We believe our turnaround is clearly taking shape and expect Q2 and Q3 to be the financial bottom for the company,” he said. Starting next year, Intel will likely benefit from the recently passed CHIPS Act, which gives the semiconductor industry a $52 billion boost in the form of subsidies that will go toward the construction of new fabs.

Source: https://www.techspot.com/news/95462-intel-lost-half-billion-dollars-last-quarter-confirms.html

Share on Facebook Share on Twitter
Previous Article
Google Quietly Introduces Powerful New Google Photos Feature — Rolling Out Now
Next Article
Are consumers ready for drone delivery? Maybe, but will they pay for it?

About Author

Shannon.Smith

Related Posts

  • ChatGPT: Microsoft to invest billions in chatbot maker OpenAI

    January 25, 2023
  • Microsoft Makes ‘Multibillion Dollar’ Investment in ChatGPT Creator OpenAI

    January 23, 2023
  • Mastodon Rejects Funding Offers to Preserve Nonprofit Status, Founder Says

    December 29, 2022
Scan Now

Categories

  • Business
  • Computer Help
  • Emerging Technology & News
  • Privacy and Security
  • Reviews

Reviews

Reimage Social

Security

Popular Posts

  • PCWorld calls Reimage “A Fantastic Repair Utility “ July 26, 2011 Reviews
  • 4 Ways to Keep the Ghouls & Goblins Away From Your PC October 26, 2010 Archive
  • The PC Key to Happiness – A Properly Maintained OS September 2, 2010 Archive
  • Google says hacked websites were attacking iPhones for years September 12, 2019 Privacy and Security

Random Posts

  • Facebook sues Chinese ad company over alleged hacking campaign December 6, 2019 Emerging Technology & News
  • How to Fix Bluetooth Pairing Problems May 20, 2021 Computer Help
  • Working from home is now widely viewed as a positive October 2, 2020 Emerging Technology & News
  • Android 13 cheat sheet: Everything you need to know August 19, 2022 Reviews
© Copyright 2019
We use cookies to ensure that we give you the best experience on our website.Ok