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Intel just took the worst beating in earnings in over a decade

Intel posts loss for 2022

Last updated

Intel's fourth quarter in 2022 encompassing the holiday season was the worst in the company's history, as it reported a 32% drop in revenue since the holiday quarter of 2021.

The company shared its results for the fourth quarter of 2022 and the entirety of the year. Its fourth-quarter revenue of $14 billion was down 32% year-over-year, and its revenue for the entire year was $63.1 billion, down 20% year-over-year.

Intel further said that its earnings-per-share for the fourth quarter was $0.16 and $1.94 for the entire year. It forecasts revenue of $10.5 billion for the first quarter of 2023.

In the fourth quarter, Intel generated $7.7 billion in cash from operations and paid dividends of $1.5 billion.

"In the fourth quarter, we took steps to right-size the organization and rationalize our investments, prioritizing the areas where we can deliver the highest value for the long term," said David Zinsner, Intel CFO. "These actions underpin our cost-reduction targets of $3 billion in 2023, and set the stage to achieve $8 billion to $10 billion by the end of 2025."

In the fourth quarter, Intel generated $7.7 billion in cash from operations and paid dividends of $1.5 billion In the fourth quarter, Intel generated $7.7 billion in cash from operations and paid dividends of $1.5 billion

Intel believes it can regain leadership in transistor and power performance by 2025, saying that its making progress with its goal of producing five process nodes in four years. The Intel 7 node is now in high-volume manufacturing for client and server markets, and Intel 4 is now ready for manufacturing.

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Apple used to be one of Intel's largest customers, but since it started producing its own chips, Intel has had to rely on other companies. However, the chip manufacturer hasn't lost hope.

Intel still believes it can win over Apple again, saying that to do so it must create better chips than Apple Silicon. As an alternative, Intel could produce Apple's chips for the company, alongside Apple's existing relationship with the Taiwan Semiconductor Manufacturing Company (TSMC).



30 Comments

ITGUYINSD 6 Years · 552 comments

The article doesn't really explain WHY Intel sales were so bad.  Especially during the holiday season.  Is new gear too expensive for consumers?  Are people keeping their computers longer?  Or are consumers moving towards more mobile devices?

It doesn't help Intel that major sellers like Dell have raised their prices making one take a second thought about buying or upgrading.  

3 Likes · 0 Dislikes
tht 24 Years · 5678 comments

ITGUYINSD said:
The article doesn't really explain WHY Intel sales were so bad.  Especially during the holiday season.  Is new gear too expensive for consumers?  Are people keeping their computers longer?  Or are consumers moving towards more mobile devices?

It doesn't help Intel that major sellers like Dell have raised their prices making one take a second thought about buying or upgrading.  

Post-pandemic bust.

MS reported a 40% decline in Windows revenue. PC sales declined liked 35 to 40%. Crypto boomed during the pandemic. Crypto is now busted, so all those server GPU sales are declining. Services (Google, Amazon, MS, etc) boomed during the pandemic - work from home services etc - and now it has busted too.

Apple will be lucky to hold the line at 20% declines imo. They said Macs would decline 3 months ago. iPhone sales have slowed due to COVID lockdowns at various plants.

5 Likes · 0 Dislikes
Appleish 9 Years · 719 comments

My lap misses my Intel MacBook Pro, on these cold winter nights. My Apple Silicon MBP is always ice cold!

12 Likes · 0 Dislikes
omasou 8 Years · 646 comments

Keep milking the same cash cow (x86)...eventually it's gonna give out.

4 Likes · 0 Dislikes
bloggerblog 17 Years · 2529 comments

Maybe if they plays those promo videos of how Intel laptops have a touch screen and MacBooks don't... maybe that'll fix everything?

6 Likes · 0 Dislikes