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