Intel ups Q2 view due to Windows XP exodus

Summary:Stronger demand for enterprise PCs---also known as the flight from Windows XP once Microsoft support ended---has delivered better-than-expected second quarter sales for Intel.

Read this

Windows XP and the Future of the Desktop

Microsoft support for Windows XP ended on April 8, 2014, with no more new security updates, non-security hotfixes, and no free or paid support options. Here are resources from ZDNet and TechRepublic to help you navigate the transition.

Intel said Thursday that its second quarter results will be better than expected courtesy of the enterprise PC upgrade cycle.

In other words, the big exodus from Windows XP in the enterprise is juicing demand for business PCs.

According to Intel, its second quarter revenue will be about $13.7 billion give or take $300 million. Intel had projected revenue of $13 billion, give or take $500 million when it reported its first quarter results.

Meanwhile, Intel said its gross margin range would be up 1 point to 64 percent. The company said costs will rise a bit due to the revenue growth.

Wall Street was expecting Intel to report second quarter sales of $13.02 billion with gross margins of 62.6 percent. Earnings for the quarter were expected to be 47 cents a share.

For 2014, Intel said it expects "some revenue growth," a projection that is better than the previous outlook for flat sales. Intel said:

The change in outlook is driven mostly by strong demand for business PCs.

Topics: Hardware, Intel, PCs, Processors

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.