IoT and data centres lead Intel's success in Q4 2016

The company's overall profits fell for the year, but sales were up

Intel has reported a 10% drop in profit overall in 2016, although the company's data centre and IoT efforts helped soften the blow, with record revenues in both sectors.

The reduction in profit is in contrast to revenue growth of 7%, with the company blaming capital expenditure for its reduced the positive outlook.

The Intel's Data Centre Group (DCG) revenues came in at $4.5 billion (3.58 billion), a 10% year-on-year increase, while IoT accounted for $689 million (548 million), which reflected growth of 19% year-on-year.

"The fourth quarter was a terrific finish to a record-setting and transformative year for Intel," Brian Krzanich, Intel's CEO. said. "In 2016, we took important steps to accelerate our strategy and refocus our resources while also launching exciting new products, successfully integrating Altera, and investing in growth opportunities."

He added that the positive results in the cloud sector were a result of the company shifting focus to embrace digital transformation in the enterprise, which the company said was a huge milestone in the company's history.

"We're executing well, and these results show Intel's continuing transformation to a company that powers the cloud and billions of smart, connected devices," Krzanich said in his statement.

"Setting a more reasonable target, management expects DCG (Data Centre Group) revenue to increase by a HSD in 2017, but believes there are opportunities for future DD growth," Analyst N. Quinn Bolton told Street Insider.

"Though we continue to be disappointed in the Enterprise segment, we note all other DCG segments are growing at or above expectations and now account for the majority of DCG revenue."

PC sales continued to decline, as is the case across the board, although its PC-chip business contributed double digit profit growth. "In 2017 and beyond, we expect server revenue to offset declines on the PC side," analyst Bill Kreher told The Australian.

Featured Resources

The ultimate law enforcement agency guide to going mobile

Best practices for implementing a mobile device program

Free download

The business value of Red Hat OpenShift

Platform cost savings, ROI, and the challenges and opportunities of Red Hat OpenShift

Free download

Managing security and risk across the IT supply chain: A practical approach

Best practices for IT supply chain security

Free download

Digital remote monitoring and dispatch services’ impact on edge computing and data centres

Seven trends redefining remote monitoring and field service dispatch service requirements

Free download

Recommended

Intel no longer considering UK chip plant following Brexit
components

Intel no longer considering UK chip plant following Brexit

7 Oct 2021
Rise to the challenge
Whitepaper

Rise to the challenge

1 Oct 2021
The total economic impact of the Intel vPro® platform
Whitepaper

The total economic impact of the Intel vPro® platform

1 Oct 2021
Google Cloud confirms Intel Ice Lake processor support for N2 VMs
virtual machines

Google Cloud confirms Intel Ice Lake processor support for N2 VMs

30 Sep 2021

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans
Laptops

Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans

11 Oct 2021
Windows 11 has problems with Oracle VirtualBox
Microsoft Windows

Windows 11 has problems with Oracle VirtualBox

5 Oct 2021