Profits fall for tech titans: Intel down 29pc, IBM down 17pc
Technology giants IBM and Intel have announced substantial drops in net income and revenue.
The move away from traditional PCs to tablets and mobile devices has been blamed for the earnings drop in both global firms.
Intel’s demand from both the consumer and business sector dropped significantly and IBM saw a rise in earnings for its software products while hardware sales decreased.
Intel reported Q2 profit profit of $2bn, down almost 30pc for the same period last year.
Fellow IT firm IBM suffered slightly less with a 17% drop to $32.23bn. Following disappointing figures for the previous quarter, the first drop in analyst forecasts in eight years, a number of cost saving measures were employed by the firm, including jobs cuts of over 3,000 staff.
IBM’s strategic plan appears to have worked as they have upped the company’s forecast for the rest of 2013. Meanwhile, Intel fear that the decline in PC sales will only continue. This is the fourth quarter in succession that sales have dropped and plans for the sales of its chips for the now ubiquitous mobile devices have yet to materialise.