On The Plus Side, They Killed Their Bitcoin Mining ASIC
Intel did not have good news for investors this quarter, reporting the largest loss in the company’s history and a 133% annual reduction in earnings per share. Unfortunately this news is not unexpected, as demand for new computers and components continue to fall every manufacture have seen serious declines in earnings, at best. No one is expecting good news next quarter either.
As Ars Technica points out, some of Intel’s problems are unique to them, such as the delay in the release of Sapphire Rapids which has helped AMD take an even larger share of server sales. That increase has helped AMD’s income, but even they are having a tough 2023. Intel’s earnings were down 36% year over year to a mere $11.7 billion. That is a bit over the predicted earnings of $11.04 billion but nowhere near what they made at this time last year.
We do not know how much Arc GPU sales accounted for their income as the AXG graphics division was absorbed into the client computing and data center groups, and is no longer reported separately. The loss for Intel may lead to more downsizing, though after last year’s layoffs that might be difficult to manage. Keep an eye out for more earnings reports, for it is that time of year.
The company has instituted layoffs and has cut pay for managers and executives to help stem losses. It has also canceled some product lineups recently, like its Blockscale series of Bitcoin-mining ASICs.