The death of Windows XP is helping Intel's bottom line

Intel has released a statement saying that its sales for this quarter are coming in higher than expected which means that they need to revise their earnings estimates for the current period. Intel is now expecting revenue to be $13.7 billion, plus or minus $300 million, as compared to the previous range of $13.0 billion, plus or minus $500 million.

Why the jump in demand? Intel says that there is strong demand in the business segment for new PCs, which is likely being caused by Microsoft’s end of support for Windows XP.

Many corporations were using Windows XP right up until the end of support and then either needed to buy new machines to replace the old hardware or upgraded the OS on older machines. When upgrading the older machines, this is really a temporary stopgap before buying new hardware. As such, Intel sees the result of these hardware purchases as they sell more chips to OEMs and it boosts their bottom line.

There are likely other factors too that are contributing to the sales of new PCs like the Surface Pro 3 and other 2:1 devices.

For Intel, this is obviously extremely good news but we suspect that there will be other companies reporting solid results for this quarter too. It would make sense that OEMs should be seeing stronger demand for hardware since Intel does not sell its own branded PCs and Microsoft will be selling Windows licenses with each new machine too.

This quarter ends on June 30th with most companies reporting their revenue in late July and August.

Source and Image Credit: Intel

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16 Comments

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hopefully more intel powered tablets can be available. CISC chips is powerful enough for serious computing, something can't be said for ARMs.

The top line surely. Bottom line represents operating costs which should be unaffected. The top line represents profit made through sales.

Sounds good to me, this could show a rise in PC sales for Q3 overall compared to slowing loss that we had last quarter. Business always moves slow with these things, companies are just now starting or finished planned upgrades to Windows 7 that they agreed to do months if not a year ago.

Also the newer 2:1s and lower priced devices are nice to, business will see less of a need to buy a laptop and a tablet for some workers and just opt for a nice 2:1 device that can detach it's screen and become a tablet and so on. Saves them money, this is what MS said they've kept hearing from companies when they started work on the Surface Pro 3.

rluka said,
So they revise it so the money they earn will always be below what they expected ?

Revise it so that it should turn out within the margin of error.

Expect French Fries and burgers to have a higher number of sale too... Many tech gonna be busy with the new upgrade that fast food will be their menu :p :shiftyninja: :laugh:

Nice. Also, I wonder if a PC heavy business will notice a lower power bill or not? Today's hardware is less hungry than XP era stuff.

Chikairo said,
Nice. Also, I wonder if a PC heavy business will notice a lower power bill or not? Today's hardware is less hungry than XP era stuff.

Good point!

Chikairo said,
Nice. Also, I wonder if a PC heavy business will notice a lower power bill or not? Today's hardware is less hungry than XP era stuff.

On some ends cause enthusiast hardware remains power hungry specially on amds side

ZipZapRap said,
Good point!

sure, spend $2000+ for a new desktop and LCD monitor (as XP was mentioned as the driver you can bet the corporates will be installing Windows 7 on the new PCs) so you can save a 50c per week in electricity (maybe).