Earlier in the week came distressing news from many manufacturers of PC components and now Intel has made their financial state a little clearer. The Register has posted the numbers, predicted earnings for Q1 of this year have dropped from USD13.7 billion +/- $500 million, down to USD12.8bn +/- $300 million. Losing about a billion dollars in profit is going to hurt anyone, even the mighty Intel. The drop in the PC market comes from a variety of sources but two of the most likely candidates are the lack of cash in consumers pockets to upgrade and a lack of competition driving an urge to upgrade. Once many gamers would willing live on ramen noodles for a time so that they could afford the next GPU or CPU upgrade thanks to the impressive performance increases the next generation offered. Now new releases tend to offer a small incremental performance increase and occasionally new features which are impressive but nowhere near what an upgrade 10 years ago offered. Certainly part of the issue is the difficult of coaxing a bit more performance out of silicon and with the reduced competition it is less financially attractive to fund expensive and risky R&D projects than it is to work on small incremental increases in efficiency and performance.
Here's hoping for a change to this market in the coming years.
"Intel has lowered its revenue forecast for the first quarter of its fiscal 2015 by nearly a billion dollars, citing a weaker than expected PC market."
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