Intel has announced its first financial report for 2021, which is for the first quarter of this year (1Q2021) that has just ended in March. It shows that the chip giant’s net income is US$3.4 billion – 41% less compared to that of 1Q2020. Its earnings are also down by 1% year-on-year (YoY), even though its computing business is up by 8%.
Intel has released its latest Quarterly Results report, which covers its 2021 thus far and ended on March 27. Its generally-accepted-accounting-practices (GAAP) -generated results show that the quarter’s total revenues (US$19.7 billion) are down by 1% YoY. This does not sound so bad – until one realises this is partly because the company posted 41% fewer net profits year-on-year in 1Q2021.
Intel’s performance in the quarter could be said to have been dragged down by its data- and non-volatile storage-centric groups, whose revenues fell by 20% and 17% YoY respectively. Then agian, Intel asserts that its total revenues beat earlier projections to the tune of $1 billion, and points out that its computing-centric group is still going strong.
Furthermore, the chipmaking behemoth points out that it has made moves in 1Q2021 that might avoid a downward trend in subsequent reports. It was the quarter in which Intel released Ice Lake-based Xeon processors, not to mention Rocket Lake-S variants.
The company also did unveil its new “IDM 2.0” strategy to expand on and diversify its operations in the future. These tactics, which include plans to invest $20 billion in new facilities to be located in the US state of Arizona, are intended to address and possibly alleviate the current chip-supply crisis.
Deirdre O’Donnell, 2021-04-23 (Update: 2021-04-23)