Intel's fourth-quarter 2015 financial results are in. The company reported revenue of $14.9 billion for the quarter, up 1% compared to Q4 2014, and operating income of $4.3 billion, down 3% from the same time last year. Gross margin shrank 1.1% to 64.3%.
|Q4 2015||Q4 2014||Change|
|Revenue||$14.9 billion||$14.7 billion||up 1%|
|Operating income||$4.3 billion||$4.5 billion||down 3%|
|Net income||$3.6 billion||$3.7 billion||down 1%|
|Gross margin||64.3%||65.4%||down 1.1%|
The company's Client Computing Group took in $8.8 billion, a 1% decline compared to this time last year. According to the company's CFO commentary, desktop platform volumes (which account for both processors and chipsets) fell 9% year-on-year, but desktop average selling prices rose 9%. Notebook platform volumes experienced a 10% year-on-year decline, but average selling prices increased 6% on that basis. The company says its tablet volumes fell a precipitous 33% compared to a year ago, but average selling prices were up "significantly."
That news aside, Intel says its shipments of 14-nm processors made up more than 50% of its Client Computing Group volume, and it says its Skylake chips have received an increasingly enthusiastic response from the market.
The Data Center Group raked in $4.3 billion, up 4% compared to last quarter and 5% year-on-year. It appears the strong growth the company experienced in this sector in recent quarters may be coming to an end, though. In Q3 2015, the company posted 8% sequential and 12% year-on-year growth for its server division, while Q2 produced 10% year-on-year growth.
The Internet of Things Group had revenue of $625 million, a 6% year-on-year increase, while the $543 million of revenue from the company's software and services segments was down 3% compared to Q4 2015.
For the first quarter of 2016, Intel expects revenue of $14 billion, plus or minus $500 million, while gross margin is expected to fall to around 58%. Those projections include numbers from FPGA maker Altera, of which Intel concluded its acquisition in late December.