Intel's Q1: Fueled by XP's demise, corporate PC demand?

Intel's Q1: Fueled by XP's demise, corporate PC demand?

Summary: Intel's data center group will carry the team in the first quarter and beyond. But the real focus should shift to Intel's newly formed business units.


Intel's first-quarter results are expected to be solid relative to expectations as the company was saved by strong corporate demand for PCs and the phase-out of Windows XP. However, the focus needs to shift to growth areas since that Windows XP buzz is all but gone.

Intel's new reporting structure sheds light on Internet of things, mobile

Analysts are expecting Intel to report first quarter earnings of 37 cents a share on revenue of $12.81 billion, up about 2 percent from a year ago.

Much of the optimism about Intel revolves around corporate PC demand — Gartner and IDC pointed to improvement — and the launch of the chip maker's Grantley server platform that should create an upgrade cycle in 2015.

Wells Fargo analyst David Wong said:

We think that recent PC data suggests that PC builds and shipments in the March quarter were at least in line with normal seasonality or perhaps better.

Intel is expected to at least reaffirm its outlook. Pacific Crest analyst Michael McConnell said:

We believe that enterprise IT spending started getting better following the sluggishness of the past few quarters, as both IT distributors Synnex and Tech Data cited improving IT spending across all markets in their recent earnings calls.

In the end, Intel's data center group will carry the team in the first quarter and beyond. But the real focus should shift to Intel's newly formed business units. Intel recently revamped the way it reports its results and added an Internet of things unit and more transparency into mobile sales.

Those two units and the results that go with them will tell you more about where Intel is going than a short PC burst from the death of Windows XP.

Topics: Hardware, Intel, Processors

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  • I don't want soldered CPUs

    Unless Intel can come up with an easily-changed mobo that you can just unsnap like Lego parts, I won't want to ever buy a computer with a soldered CPU. When I read that would be the future design, I bought machines which are of the old-school, so if the CPU needs to be detached and replaced, it can. Windows can be reactivated on the same PC on which it resides. With a soldered CPU, when it blows you have to change the machine. This design is equivalent to unibody construction in cars, making every repair, far more expensive.

    We get used to our hardware. It's not so much a question of cost, but hassle in buying something new. It's a major hassle to navigate through all the jargon PC makers pack into their websites, to figure out what computers to buy. So we'd rather replace and repair, keeping what we know already works well, in favor of that pig-in-a-poke we guess at.

    This is the problem of the Windows OS and almost any kind of complex equipment you buy, be it a washer, refrigerator, car.. or computer. So anything which shortens the useful life of such a thing, is not welcome. The life is shortened, when the crucial parts cannot be detached and replaced. Think of a car whose parts are all one unit; if one part of that unit goes bad, the whole unit must be thrown out, as repair has been made impossible. So then car sales, go down.

    So too, with computers.
    • So what happens when ....?

      So what happens when the bulk of your Computer IS the CPU and the 'rest' of the motherboard carries mostly sockets and plugs that can be replaced for pennies.
      Will you still want to compromise your thermals for a replaceable CPU?

      I just bought one of THESE ... Total cost of board is $85 includes a $72 CPU soldered on.