Intel CEO: Win10 can't save PC sales

More than 95% of Intel’s operating profit last year came from the sale of PC chips. That's why Intel has been paying close attention to the dynamics of the entire PC market.

But in recent years, the PC market in general has been in decline. According to market research firm Gartner, in the first quarter of 2015, global PC shipments fell by 5.2% year-on-year.
The largest decline in shipments year-on-year is in the business desktop PC space, which is Intel's core customer base. In fact, due to weak demand for business desktop PCs and Windows XP upgrades, Intel has cut its revenue forecast by nearly $1 billion in March.
Moreover, Intel does not believe that PC sales will grow in the short term, even if the Windows 10 system will be released later this year does not help.
Intel CEO Brian Krzanich said at the annual general meeting on Thursday: "We are experiencing another transition, which is the Windows 10 upgrade. The quarter-on-quarter growth is likely to increase. But we still have to look at the long-term. In the long run, the PC market will remain flat or slightly down."
But Ke Changqi does not seem to worry about the impact of this market trend on Intel's overall performance growth. Instead, he said growth from other areas, especially in the data center business area, would offset the negative impact of PC sales. Intel’s data center business revenue grew 18% last year and is expected to reach $14 billion this year.
Ke Zaiqi added: "We see it as the company's next growth engine."
It is difficult to estimate how much the weak PC market has affected Intel's PC chip sales revenue. Since the last quarter, Intel has incorporated PC and mobile chip sales into one division, the Client Computing Group, which has masked more than $4 billion in losses from its mobile chip business.
But in doing so, Intel has further strengthened the scale of its data center business. The data center group's operating profit for the last quarter was $1.7 billion, accounting for about 65% of the company's total operating profit. The Data Center Group has become Intel's largest business unit in the business customer field.