Newly-confirmed Intel chief executive Bob Swan made a bold claim on Thursday afternoon: that the company’s manufacturing would never again be a constraint on customer growth, following several quarters in which it did just that.
Put another way, Intel said that it was investing again in more 14nm capacity, even as it planned to offer a higher volume of next-gen 10nm products during the 2019 holiday season than it had originally planned.
Both statements came as Intel reported a tumultuous second quarter. The PC-centric Client Computing Group—which has historically struggled, and which Intel was gradually deemphasizing—reported positive revenue and operating income growth, while the historically more successful Data Center Group saw revenue and operating income decline. That, as Intel reported flat revenue of $16.1 billion and an 11-percent drop in profit to $4.0 billion YOY, and lowered full-year revenue forecasts because of a “more cautious” view of the year. Whew!