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Intel Q3 2021 Revenue: Flat Quarteras Notebook Sales Drop, Data Center Exhibits Average Performance

Intel’s third-quarter earnings are out, and unsurprisingly, the response from investors is largely negative. For the nth consecutive time, the chipmaker reported a predominantly flat quarter. The overall revenue was by just 5% to $18.2 billion, a considerable figure overall, but now much better than what the company was pulling in a decade back. The Client Computing Group (CCG) saw a drop of 2% in yearly revenue while the Data Center Group (DCG) was more stable, exhibiting a growth of 10%

Having a closer look at the numbers, you can see that while the desktop business did quite well, the notebook segment was choked by component shortages. The notebook CPU sales dropped by 5% while desktop SKUs grew by 20%, In terms of the ASPs, the notebook prices grew by 10% while desktop prices remained largely unchanged at 4%. Overall, the CCG remained flat, with a growth of just 2%.

In the Data Center business, Intel performed well, with the YoY revenue growing by 12%. Out of this, the bulk (70%) of the mullah came from Enterprise and Gov. sales while the Cloud SP suffered a loss of 20%. The unit volumes grew by 8% while the ASPs remained flat at 3%.

Intel pulled in a revenue of $18.1 billion in the third quarter of 2021 at a gross margin of 57.8% and an EPS of $1.71. The next quarter forecast indicates a QoQ increase of $0.2 billion, but a YoY drop of 3%. The gross margins are also expected to drop by a rather considerable 6.5% on account of increased competition.

Finally, the FY2021 outlook, once again, is as flat as it gets. You’re looking at a YoY revenue increase of 1%, gross margins of 57% (down 2.4%), and EPS of $5.28.

Areej Syed

Processors, PC gaming, and the past. I have been writing about computer hardware for over seven years with more than 5000 published articles. Started off during engineering college and haven't stopped since. Mass Effect, Dragon Age, Divinity, Torment, Baldur's Gate and so much more... Contact: areejs12@hardwaretimes.com
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