From InfoWorld: Intel shipped 5 million processors for tablets in the first quarter, but profits fell as PC sales remained weak.
Net income for the quarter ended March 29 was $1.9 billion, down 5 percent from a year ago, Intel said on Tuesday. Revenue increased 1 percent to $12.8 billion.
The slight revenue improvement came largely from its Data Center Group, which sells Intel's Xeon server products. Revenue from its Mobile and Communications Group, which sells chips for tablets and smartphones, tumbled 61 percent.
Intel has been paying tablet makers to cover the cost of using its chips in a bid to compete better with ARM. As a result, it doesn't make much money today from the tablet processors it sells.
Revenue from its PC Client Group was $7.9 billion, down 1 percent year over year. Intel is trying to expand its mobile and data center businesses to offset the ongoing decline in the PC business.
"In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014," said Intel CEO Brian Krzanich, in a statement.
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