The server division is 40 percent weaker, the Ryzen CPUs are noticeable in the desktop. Intel is putting off until 2022 and 2023. Intel announced the results for the third quarter of 2020: Revenue fell from $ 19.19 billion to $ 18.333 billion and profit from $ 5.99 billion to $ 4.276 billion. A look at the same quarter of the previous year shows that the core business is ailing.
In the server division, sales fell from 6.383 billion US dollars to 5.905 billion US dollars and profits even plummeted from 3.115 billion US dollars to 1.903 billion US dollars. As Intel breaks down, sales of CPUs for the enterprise segment halved, the average sales price of the actually high-margin processors fell by 15 percent. AMD’s Epyc 7002 (Rome) are clearly noticeable here.
It looks a little better in the client department: Sales rose from 8.379 billion US dollars to 8.762 billion US dollars, but profits fell from 4.305 billion US dollars to 3.554 billion US dollars. Intel was able to sell 16 percent more notebook chips (Tiger Lake), but had to reduce unit prices by an average of 7 percent. There was a 16 percent decline in desktop CPUs at the same price, which is likely due to AMD’s Ryzen 3000 – and the Ryzen 5000 will appear shortly.
For the fourth quarter of 2020, Intel expects sales of only 17.4 billion US dollars, significantly less than in the previous year (20.209 billion US dollars). Next year, Intel will have to stay afloat with the massively delayed Ice Lake SP for servers; a last 14 nm design will help with the desktop, Rocket Lake.
CEO Bob Swan prefers to look to the future: “We will have a great lineup in 2022, and I am more and more confident that we will be a leader in 2023 with our own 7nm manufacturing and external nodes of our products,” he said.
Until chips like Alder Lake and Meteor Lake (desktop) as well as Sapphire Rapids and Granite Rapids (server) appear, there is still more than enough time for further postponements. So far, 10 nm Super Fin still does not seem to be fully developed, and Intel recently postponed 7 nm to the end of 2022 at the earliest.