If this turns out to be true, then it will be the second time in the last three years that its annual revenue sees a decline.
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Desktop PCs fell in high-single-digits, while the segment of notebook PCs and premium ultramobiles such as the MacBook Air and Microsoft Surface Pro posted a low-single-digit decline.
Intel now expects its data center, Internet of Things and memory businesses to be growth engines in the long term.
Intel predicted gross margin, or the percentage of sales remaining after deducting the cost of production, of about 62 percent for 2016.
Intel expects FY16 revenue to grow in mid-single digits, which is in line with the analysts’ forecast of approximately 6% growth.
Intel stock climbed Thursday after the chipmaker said it expects its revenue to grow again next year and raised its quarterly dividend.
Intel gets most of its revenue from chips for personal computers, a market that has been declining lately. Intel CEO Brian Krzanich is hoping that a new family of chips code-named Skylake and the Windows 10 OS will help in pushing up demand for its chips.
Stacy Smith, Intel Chief Financial Officer, claimed, “We can generate good Intel growth rates when the PC market is down, and we can generate great Intel growth rates when the PC market is flat”.
Amid an expectation of further slump in PC sales, Intel believes that its overall business will advance about five percent.
He described Intel’s Client Computing business as a strong foundation, which delivers healthy profits and critical intellectual property to the rest of Intel.
For 2015, Intel’s capital spending estimate was $7.3 billion, but for the next year, it plans to boost it up to $10 billion. That is well up from the forecast put forward at the latest earnings report of $7.3 billion this year.
The company said it would increase its annual dividend by eight cents a share to $1.04, beginning with the dividend that will be declared in the first quarter of 2016.
For 2015, the chip maker expects revenue of $55.31 billion.
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That is about 1% less than Intel reported in 2014.
