For its big comeback, Intel needs to spend money – and it's making less and less of it
For a company hoping to make a grand comeback in a few years, things are not looking great for Intel.plans to lay off staff and cut billions of dollars in spending after its third-quarter revenues fell 20 percent, year on year, and profit plunged 85 percent.previous quarter
In Intel's PC chip business, the Client Computing Group, revenue dropped 17 percent year-over-year to $8.1 billion in the third quarter while operating income declined 54 percent to $1.6 billion over the same period. As for the Datacenter and AI Group, things were even worse, with revenue declining 27 percent to $4.2 billion while operating income fell by 99 percent to an abysmal $17 million.
Intel made sure to put most of the blame for this behavior on a"deteriorating" economy, beset by"slowing consumer demand, persistent inflation, and higher interest rates," as it explained in its latestBut it's also clear the chipmaker continues to face competitive pressure from x86 rival AMD as well as organizations that are making Arm-based processors, such as Apple, Amazon, and Ampere Computing.