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."

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

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

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/hardware/34326/intel-hades-canyon-nuc-review-dead-impressive
Hardware

Intel Hades Canyon NUC review: Dead impressive

5 Sep 2019
Visit/hardware/34247/intel-announces-new-10th-gen-comet-lake-processors
Hardware

Intel announces new 10th-gen ‘Comet Lake’ processors

21 Aug 2019
Visit/security/34226/knob-attack-lets-hackers-insert-themselves-into-your-bluetooth-calls
Security

KNOB attack lets hackers listen in on your Bluetooth calls

16 Aug 2019
Visit/server-storage/34108/broadberry-cyberserve-xeon-sp2-r1208-review-a-beast-of-a-server
Server & storage

Broadberry CyberServe Xeon SP2-R1208 review

30 Jul 2019

Most Popular

Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/security/cyber-security/354468/if-not-passwords-then-what
cyber security

If not passwords then what?

8 Jan 2020
Visit/policy-legislation/31772/gdpr-and-brexit-how-will-one-affect-the-other
Policy & legislation

GDPR and Brexit: How will one affect the other?

9 Jan 2020
Visit/web-browser/30394/what-is-http-error-503-and-how-do-you-fix-it
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020