This morning, it was officially confirmed that Apple has acquired Intel’s smartphone modem arm for $1 billion. Intel also announced its 2019 fiscal year Q2 earnings. According to reports, Intel’s revenue hit $165 billion. Relative to last year’s $170 billion, its revenue fell by 3%. In addition, it has a net profit of $42 billion. This is down 17% lower than the $5 billion it got in the same period last year.
However, Intel ‘s performance in the quarter exceeds analysts’ expectations, so Intel also raised its annual revenue guidance. The trade dispute between China and the US was positive for Intel in some regards. According to Intel’s CEO, Si Ruibo, the trade war forced many customers to push their orders to Q2 2019. Thus, the increase in the Q2 order volume is basically as a result of the botched Q1 orders.
In addition, with regards to Huawei’s ban issue, Si Ruibo said that after the US government announced the ban on physical listings in May, Intel has suspended shipments to Huawei. However, after inspection, some of Intel’s products that meet the requirements were re-shipped. Thus, the impact of Huawei’s ban on Intel’s revenue for Q2 is limited. In the fourth quarter of 2018, Huawei had the fourth largest shipment in the global X86 server market, with the third-largest revenue in the world, second only to Dell, Hewlett-Packard, and other companies. This is also an important partner for Intel.