Intel's Q2 2021: PCs up 33 Percent, Servers Continue Decline
Intel released its Q2 2021 earnings report today, notching its tenth consecutive quarter that beat estimates, raking in $19.6 billion. Intel reported that its PC volumes increased 33% on the year, spread across gains in both laptops and desktops. However, Intel's server unit continued to post weak results, and the company reduced its gross margin outlook. Intel CEO Pat Gelsinger also declined to comment on recent reports that the company is in talks to purchase GlobalFoundries for $30 billion.
Intel says it will ship several million Alder Lake chips to its partners in the second half of this year, and that it has already shipped 50 million Tiger Lake chips into the market. However, the company also warned that it would see 'particularly acute' chip shortages for desktop PCs in the third quarter. Intel remains bullish amid these challenges, though, as it raised its full-year outlook by $1 billion to $73.5B.
Intel's desktop PC volumes were up 15% for the year, while notebooks jumped an incredible 40% year-over-year (YoY). Those gains came at the expense of price cuts, though, as Intel's average selling prices (ASPs) declined 5% and 17% for desktops and notebooks, respectively, indicating that Intel is reducing pricing to stay competitive with AMD.
