PC sales hit hard: Intel suffers largest quarterly loss in history

According to news on April 28, as a sharp decline in PC sales hit Intel's business hard and the recovery was slow, the chip giant suffered its largest quarterly loss in history in the first quarter, and it is expected to continue to lose money in the second quarter.

The financial report showed that Intel's first-quarter revenue was US$11.7 billion, a year-on-year decrease of 36%, falling to a low level not seen since 2010, but better than analysts' average forecast of US$11.04 billion.

PCs account for a large portion of Intel's revenue. Data released by IDC, a well-known research company, shows that PC shipments fell by 29% year-on-year in the first quarter, continuing the downward trend that began at the beginning of last year. Intel's PC chip division's first-quarter revenue fell 38% to $5.8 billion.

However, Intel CFO David Zinsner said the market will get back on track later this year once PC manufacturers clear excess chip inventories and start placing new orders.

The decline in revenue caused Intel to post a net loss of $2.76 billion in the first quarter. This was the company's second consecutive quarterly loss and exceeded the record loss of $687 million set in the first quarter of 2017. Intel said the company will continue to lose money in the second quarter.

Intel expects second-quarter revenue to be between US$115 billion and US$125 billion. Although it is still far lower than the same period last year, the midpoint is slightly better than analysts expected, pushing the stock price to rise more than 10% in after-hours trading. 6%.