According to a preliminary
estimate by market research firm IHS, PC sales declined by the highest
amount in at least 10 years in the first quarter. Mobile PC shipments
declined 13.4 percent compared to the fourth quarter, IHS said. While
sales typically decline in the first quarter following the peak season
in the fourth quarter, the drop this year appears to be abnormally
sharp, even exceeding the 10.3 percent plunge during first quarter of
2009, when the financial and economic crises were at their peak.
PC Industry is facing major challenges as it struggles to find a place
in the consumer’s budget amid the rising popularity of the lower-priced
media tablet,” said Craig Stice, senior principal analyst for compute
platforms at IHS.
IHS expects PC market conditions to improve in
the second half of 2013 as new mobile products drive market growth.
Global shipments of ultrathin and Ultrabook PCs are expected to nearly
triple in 2013, mostly driven by increased sales in the second half of
For the second quarter, Intel said to expects sales of between $12.4 billion and $13.4 billion.
the full year 2013, Intel said it continues to expect revenue to
increase by a low single-digit percentage compared to 2012 sales of
$53.3 billion. The company cut its 2013 capital spending estimate by
about $1 billion, saying it now expects to allocate between $11.5
billion and $12.5 billion to capital spending.
challenging PC market and the notion that PC sales may have peaked,
Otellini said the future for Intel looks bright. "I am excited about
what lies ahead for Intel," Otellini said.
Intel's CEO search
"remains on track" with the goal of naming a successor when Otellini
retires next month, a spokesman for the company said. Executives did not
discuss the CEO search during the analyst call.