Intel's income is down and the PC market is taking a battering. The company won't go bankrupt. Phew! But, it needs to figure out something for the post-PC era.
I could say a whole bunch about why it's hard to see things turning around at Intel because they just don't get the way computing is going. I could talk about the fact that they have made zero changes in their culture or organization that show they have a longer term vision that is bigger than, "We are going ultra-mobile.
I could mention the fact that they are getting their butts handed to them by ARM (there was a time when ARM wasn't even a pimple on Intel's butt and now, it is a whole new butt with its own grind - end of analogy).
What's the point? You can't turn this giant hunk of manufacturing around on a dime. You couldn't stop the Titanic on a dime, either, and look what happened there.
I don't think this is the last bad quarter we will see, and I don't think the PC slump is every going to stop slumping for a long time.
Here's the dish straight from Intel's announcement:
Q2 Key Financial Information and Business Unit Trends
|Q2 2013||Q1 2013||vs. Q1 2013|
|Revenue||$12.8 billion||$12.6 billion||up 2%|
|Gross Margin||58.3%||56.2%||up 2.1 pts.|
|Operating Income||$2.7 billion||$2.5 billion||up 8%|
|Net Income||$2.00 billion||$2.05 billion||down 2%|
|Earnings Per Share||39 cents||40 cents||down 3%|
Intel's Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after July 17.