Intel recently released its earnings report for the second quarter of 2019, with revenue of $16.5 billion, down 3% from a year earlier, and net profit of $4.2 billion, down 17% from a year earlier. According to the report, the decline mainly occurred in the data center business, while there was still a certain increase in customer computing. The business of Internet of Things has grown considerably. Looking back on Intel's first quarter earnings in 2019: Intel's revenue in the first quarter was $16.1 billion, unchanged from the same period last year.
Data Center Business Pressure
According to statistics, Intel's customer computing increased by 1% to 8.8 billion US dollars compared with the same period last year. Operating profit was $3.7 billion, up 16% from $3.2 billion in the same period last year. In the data center area, Intel's revenue has declined significantly. Q2's revenue this year is $5 billion, compared with $5.5 billion in the same period last year, a 10% decline. Operating revenue fell from a new $2.7 billion to $1.8 billion this year, a 34% decline. This is Intel's biggest revenue decline this quarter. In the first quarter, Intel's data-centric revenue fell by 5%, while PC-centric revenue increased by 4%.
According to the analysis of industry experts, data centers and other businesses are affected by the product cycle, during which time the pressure is relatively high. Looking forward to the release of Intel's next generation of products may bring good performance.
Internet of Things Business Achieves Great Growth
But Intel has achieved great growth in the Internet of Things business. Internet of Things Group achieved $986 million in revenue, up 12% from the same period last year. Intel's Mobileye business has Q2 revenue of $201 million this year, up 16% from the same period last year, thanks to the boom in the field of self-driving. Looking back at the first quarter, IOT's revenue grew 8% year-on-year (excluding Wind River, 19%) and Mobileye achieved a record first quarter revenue of $209 million, an increase of 38% year-on-year. From the performance of the first two quarters, the Internet of Things and Mobileye business continued to maintain strong growth, and industry experts also said that there are broad market opportunities in the future in the fields of artificial intelligence, Internet of Things, vehicle networking, etc. Intel's deep technology accumulation will create better business performance in the future.
Intel also forecasts future revenue, which is expected to be $69.5 billion this year, down slightly from last year.
Regarding Intel's second quarter earnings, Strategy Analytics Wireless Network Director Yang Guang said that Intel has faced considerable competition pressure from AMD in recent years, but there are still many opportunities in the fields of artificial intelligence, Internet of Things, automatic driving and so on, so the effect of business adjustment will take some time to gradually develop. Apparently, so in the medium and long term, Intel's business is going well.Author: Cheng LinlinEditorial Responsibility/Format: Wang Yurong
Proofreading/Auditing: Shen Qing