Intel revenue buoyed by strong Q4 but PC business flatlines

Chip maker looks to stabilise earnings as it continues to feel the hit in a declining PC market

Intel shares have dropped after the chip manufacturer's revenues in its core PC business dropped three per cent to £8.9bn in the firm's final-quarter report for 2014.

It comes after global PC shipments fell by 2.4 per cent during the fourth quarter of the year, marking another three-month period where sales of the devices continued to decline.

However, the drop was not as bad as expected and Intel's full-year revenue for the quarter and the year were both up six per cent year on year.

Those revenues, which amounted to $56bn (£37bn) for the year and almost $15bn for the fourth quarter, were boosted by tablet sales, which exceeded Intel expectations with 46 million units shipped.

"The fourth quarter was a strong finish to a record year," said Intel CEO Brian Krzanich.

"We met or exceeded several important goals: reinvigorated the PC business, grew the datacentre business, established a footprint in tablets, and drove growth and innovation in new areas," he continued, adding that the company has several aims for the year ahead.

"There is more to do in 2015. We'll improve our profitability in mobile, and keep Intel focused on the next wave of computing."

However, while Intel aims to improve profitability in spaces such as the Internet of Things, big data and mobile, the firm is not making wild speculations about increasing its earnings during 2015, as it continues its attempt to stabilise revenue following the drop in PC sales.

"In 2015 we're predicting kind of flat [figures], nothing spectacular but stable, is [what] I would call it," Intel chief financial officer Stacy Smith told Reuters.

That is an understandable viewpoint, as Intel lost money in its mobile business, reporting "negative revenue" of $6m. The firm thus predicts "growth in mid-single-digit percentage points" for the year head.

One of the areas into which Intel is looking to expand is big data, as Chris Shaw, IT director for EMEA and APAC, told Computing at the IT Leaders Summit last month.

"We've started that ball rolling, and have invested in various capabilities that have enabled the business to recognise areas of potential revenue growth, and we've probably hit in the double-digit-million area in that space," he said.