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So Intel released its second quarter results earlier this hour let's go behind the numbers with Stacy Smith Intel chief financial officer.
And executive vice president the stock is slightly lower I'm I'm going to guest Stacey that that's partly because you guys -- your full year forecast.
What is behind that because the consensus the expectation was just a bit higher.
That you know as we look at it the consensus is thirteen point seven billion for the revenue you guys are coming in what about thirteen point five what's up.
Yeah so first on the second quarter -- the second quarter came in pretty much right as we thought we saw some unit growth we -- some revenue growth we saw margins expand a couple of points.
As we look to the third quarter again we're expecting that growth were.
I'm expecting some.
Revenue growth were expecting some unit growth were expecting margins -- go up another few points.
But our view overall of the size of the PC market has come down some from the beginning of the year so we've but on our expectations for the four year.
That's primarily due to what's happening in the classic PC market.
What we're seeing in some of the new categories like tablets is very fast growth and in fact in the second quarter we announced as linemen and the Samsung Galaxy Tab and that's -- spectacular device -- that we're very proud.
-- yeah I mean that is a hot hot device so what is that going to do when you're looking at numbers and and let me first just get right away what you do expect.
For the PC numbers of course when you look at the IHS report and that they show the PC sales for the Carter what -- Fell about eleven point 4% but in the previous quarter.
It was a record fall more than that and and I'm just beginning to wonder what do you see there and -- you guys gonna finally look at this and say all right I'm we're going.
All out for Smartphones and tablets.
Well I say we're there we're going all out but it but it expand that beyond Smartphones and tablets is they were going all out for -- for mobile devices.
You know our numbers are pretty much in line with what you see from third parties were expecting a decline in the classic PC segment.
But we're expecting really fast growth rates for us in things like two in ones.
That's really where the market for computing is going it's become more personal it's become more mobile it's -- driven by consumers.
And we're targeting our product -- right at the heart -- that I.
I wanna educate our viewers on and on what has become a very hot operation a product for you guys and that's the the fourth generation has -- -- That is got it all day battery life one point four billion transistors on a teeny little chip I studied this thing you've got superior graphics.
Cooley is buying this other than the names that we already know.
What can we expect from the house well when it comes to the actual hardware makers.
Yeah well I I think you're gonna see really all of our partners.
Launching products it and I think those products are going to be spectacular.
When we get into the back half of this year.
You have this nice confluence of events you have -- as well which you talked about which is -- enable this incredible performance particularly in visual computing.
And it will enable all day battery life and -- two and one form -- so if something that doubles as both the great notebook computer and also great tablet.
You have touch enabled devices coming to the marketplace served -- really penetrating into a much greater percent.
And you have windows -- don't want and I think the combination of that is gonna yield some really great products when we did -- but I'm glad you brought up wait a minute to be a great price point.
Some -- out of windows eight because of it's a disappointment for me but you can you can say it's not but there are some people thought that this would be a massive adoption that the numbers haven't quite hit it.
Do you look at that -- we we hoped it would do better but we believe there will be.
Other generations of -- that will then be adopted by a lot of the hardware makers.
You know what what we're hearing from people as they set their expectations for the back half of the year.
Is the excitement about the usage smaller windows it out -- and will.
And when you couple that with the kind of hardware that we're gonna bring to the marketplace in the kinds of designs that are partners are doing I think you're gonna have great devices out the market.
Speaking of devices got to talk about the set top box that we're still cheering about yet we haven't seen from Intel.
You made a deal with an Israeli companies say so you're buying some of the intellectual.
Ideas that might be needed for this.
Where do you stand on content and what's this thing gonna look like Stacey could you give us a window and -- Intel and whether it's a box or something up trying to figure out what -- this.
Yes I'm going to be a pretty high -- answer too -- wanna get too far out ahead of my skis and for competitive reasons but.
Here we see a big opportunity in the living room.
We believe that we've got a business model that's going to be pretty exciting to people.
And more importantly -- we've got this device this connect enable things that people really can't do today from a performance standpoint from the standpoint of you -- But it what we do have some excitement about any -- city.
That when you say I know competitively but you need the contents have you been -- the content deals.
Yet you know that's a place.
Are all all I'll probably hold off from going where were well I'll just say were well into negotiation.
With content providers and can leave it at that.
I'll take that one and I just want to quickly finally ask about but you you talked about it superior graphics from that ship.
Does that mean gaming are you going heavy on the gaming opportunities or is it a lot of the download a video that people are doing right now.
Does he think committed at the first approximation of just the performance of the device being able to quickly scanned through and search channels being able to.
To to flip from place to place if you think about the device is probably at her house today there's there's a lot of lag time.
So that performance really enables a great user experience and then you -- With what the teams put together in terms of these user interface and some of their capabilities I think it's it's a pretty exciting product.
We will watch for all of -- Stacy thank you for joining us on Fox Business.
Thanks for -- Stacy Smith is Intel's chief financial officer executive vice president.
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