Today, January 25, Intel announced its financial results for the fourth quarter of 2018. The company showed $ 18.66 billion in income and did not meet analysts' expectations. Interestingly, according to Intel, the downside is the weak sales of smartphone modems.
Although the processor giant did not meet the hopes of financiers and analysts, it showed a 9% increase in revenue over the same period last year.
In its fourth quarter financial report, Intel notes that it has received lower-than-expected profits, largely due to weak smartphone modem sales, slowdown in sales growth in China, and increased demand for cloud services by consumers.
Intel is one of the major providers of iPhone XS, iPhone XS Max and iPhone XR modems, and it is not surprising that poor sales of the iPhones have affected the revenue and profits of the processor giant. Let's remind you that besides Intel, all other component manufacturers for Apple also showed poor financial results.
A number of analysts are of the opinion that Intel's downgrading will continue in the first quarter of this year. In its financial report, Intel predicts that Q1 2019 earnings will be $ 16 billion.
Following the publication of the financial statement, the price of Intel shares fell by 8%.