Step 1, Increase Chip Supply … Step 3, Profit!
Q1 2020 was kind to Intel who saw a total revenue of $19.8bn this quarter, surpassing Q1 2019’s by 23% and also beating the analysts estimates. Net income looks even better, a total of $5.7bn which is an increase of 42% compared to a year ago; or as The Register calculated, roughly $63m a day in profit.
When you break it down, Intel saw a 14% bump in PC sales compared to this time last year which was possible thanks to product being available in the supply chain when many shifted to working from home or eyeing upgrades for their personal machines. Interestingly data centre revenues jumped by $2bn to a total of $7b suggesting that they did indeed move a significant amount of server parts in this first quarter. Now that they are able to provide a solid supply of products Intel is expecting Q2 to bring in about $18.5bn which is a higher amount than industry analysts are expecting.
As for new products, work on 10nm Tiger Lake chips is progressing and they expect Project Athena laptops to arrive this year, with the full lineup available before Christmas. Analysts such as Patrick Moorhead suspect that the lower predicted income in Q2 may have to do with the costs associated with preparing Tiger Lake for launch.
Intel today reported a bumper first quarter of the year, with a big shift to homeworking worldwide partially fueling double-digit growth of its PC processor sales.