Intel, the world’s leading manufacturer of computer processors, is set to reveal its latest outlook for the PC industry. Recent data, however, suggests that computer sales may be experiencing a decline.
According to Wall Street analysts, Intel is expected to report a revenue of $15.2 billion and adjusted earnings per share of 45 cents for the December quarter. For the current quarter, revenue estimates stand at $14.2 billion with an EPS of 34 cents.
A recent assessment of shipment numbers from major notebook makers in Taiwan has caused KeyBanc Capital Markets analyst John Vinh to lower his 2024 laptop PC unit forecast. Vinh reported that laptop shipments for December were 13.3 million, falling short of his initial estimate of 14 million. He attributes this to a weaker-than-expected PC recovery. It is worth noting that laptops make up the majority of PC sales as compared to desktops. Vinh stated, “We view lower December shipments and a lower full-year outlook as negative for PC-exposed companies.”
The majority of the global laptop PC production is carried out by Taiwan original design manufacturers (ODMs), accounting for over 90% of production. These ODMs are responsible for manufacturing PCs for major computer sellers such as Dell, Lenovo, and HP.
In the past 12 months, Intel stock has experienced a notable increase of 64%, surpassing the 53% rise observed in the iShares Semiconductor ETF.
