Intel sales, profits slide for 2012, but data center business growing

Intel saw sales and profits drop in 2012, as the company was hit by a slide in demand for personal computers and its continued inability to make it big in the smartphone and tablet markets, but its data center business continued to grow.

The world's biggest chip maker reported revenue of $53.3 billion for the year, down 1.2 percent compared with 2011, and posted net income of $11 billion, down 15 percent.


Intel also reported its fourth-quarter results on Thursday. Revenue slipped 3 percent and net income was down 26 percent from the final quarter of 2011, and while earnings per share slipped from $0.64 to $0.48, they were $0.03 above a consensus estimate from analysts polled by Thomson Financial.

The root of Intel's PC client problems lies in the declining market for PCs, where it has traditionally been the market leader, and the rise in popularity of tablet computers, where it faces much stronger competition.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is This email address is being protected from spambots. You need JavaScript enabled to view it.