Quips: The Long Tail On Intel's Latest Earnings

Latest Earnings Reflect Macro Trends In PC Shipments, Data Center Growth, and IOT
Intel Building Noyce
Industry bellwether, Intel, reported earnings per share of 41 cents versus 38 cents per share year over year.  Revenue came in flat at $12.78 billion versus $12.76 billion. The continued secular PC slump and late entry into mobile chips still drives into the flat revenues of the recent earnings at Intel.
However, the bright side is the investment and diversification into data center showed a 19% jump in revenue!  The secular growth in cloud and networking drove these gains.  And more importantly, Intel is much better positioned for the future of sensors and analytical ecosystems related to IOT.  From security at the core chip level to analytics of sensor data, Intel is poised for long tail.  Moreover, the strategic investments from Intel Capital appear to be paying off.
The Bottom Line: Intel's Outlook Reflects A Broader Secular Outlook On Digtialization
Constellation sees a market with 80B sensors in devices by 2020.  Those sensors will get smarter and that’s where Intel’s future lies in bringing things to life from the chip level and then back into the sensor and analytical ecosystems.  These advancements and movement to mobile gives Intel a platform that builds on its strengths through alliances and partnerships building on top of Intel’s platform.  The adoption of Windows 10 may head off the currency head winds with the stronger dollar.

Your POV.

Do you see the impact on digital disruption to Intel?  Can you see the macro effects on disrupting digital business?  Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

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