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Reports US

US stock market daily report (April 17, 2014, Thursday)

April 18, 2014, Friday, 05:39 GMT | 00:39 EST | 09:09 IST | 11:39 SGT
Contributed by Millennium Traders

Intel Corporation (INTC-Nasdaq) emerging area they are delving aggressively into, Internet of Things (IoT) Solutions Group, which would allow nearly every device or appliance to be connected to the Internet, is slow to bloom. Chief Executive Brian Krzanich keyed in on Internet of Things for potential growth, at the Consumer Electronics Show earlier in 2014.

Internet of Things is the new reality driven by the convergence of increasingly connected devices, cloud economics for computing and data, and the acceleration of big data analytics. Intel is focused on accelerating the development and deployment of intelligent devices, as it markets IoT which creates systems of systems by connecting legacy devices to the cloud and enabling end-to-end analytics to transform business. In summary, IoT will enable Internet-enabled devices to network and communicate with each other and the cloud.

Krzanich took over the helm as CEO in May 2013 said, “We believe we have a road map to get to profitability in that business. Those are the milestones to me that will lead to profitability, long term.” He was referring to the launch of a new versions of chips which will be available from Q1 and into the second half of 2015 and 2016.

Main core business for Intel remains personal computers. For Q1 of 2014 revenue was $156 million from mobile and communications chips which was down a whopping 62% from same period in 2013. For same period of 2014, revenue from Internet of Things group was $482 million, up 32% from same period in 2013. Revenue from chips for PCs came in at $7.9 billion while chips for servers and data centers rose by 11% to $3.1 billion.

Marketing costs by Intel appears to be main reason their mobile business is losing so much money, with a loss in Q1 of $929 million. During 2013 the chip maker lost $3.15 billion in its mobile communications group during its efforts to compete with smartphones and tablets. Intel offers manufacturers who buy its tablet chips rebates, which added to its losses. For Q1 2014 Intel reported revenue of $12.8 billion.

U.S. markets will be closed Friday April 18 in observance of Good Friday. We take this time to wish everyone a very Happy Easter which will be celebrated Sunday, April 20.