The PC market is showing signs of recovery, with Intel increasing its revenue guidance based on improved chip shipments.
The chip maker has raised its revenue guidance for the third quarter to $15.6 billion, plus or minus $300 million, an improvement from $14.9 million, plus or minus $500 million.
That's due to PC makers replenishing laptop and desktop inventory, which means Intel is shipping out more chips. It's likely in anticipation of the holiday season, when PC shipments rocket.
"The company is also seeing some signs of improving PC demand," Intel said in a statement.
In the second quarter of the year, PC makers slowed down chip orders and were clearing out existing stock of laptops and desktops. PC shipments declined by 4.5 percent during that period, according to IDC.
Shipments of gaming PCs, 2-in-1s and Chromebooks are driving PC shipments. Microsoft's free upgrade offer to Windows 10 has also ended, which means users are more likely to buy new PCs to get Windows 10.
Meanwhile, new laptops with Intel's Kaby Lake chips are now available. All the top PC makers have announced new 2-in-1s and laptops with Intel's new chips. New Kaby Lake chips for gaming PCs will be announced in January.
Intel also has started shipping Pentium and Celeron chips, both aimed at low-cost laptops, based on the same architecture and code-named Apollo Lake. Many Chromebooks are based on Apollo Lake chips.
Intel will announce third-quarter earnings on October 18.
Next read this:
- 15 IT resolutions for 2019
- The 9 new rules of IT leadership
- 20 ways to kill your IT career (without knowing it)
- IT manager’s survival guide: 11 ways to thrive in the years ahead
- 7 key IT investments for 2019 (and 3 going cold)
- 10 signs top talent may soon leave
- 11 red flags to watch for when hiring
- 7 things IT should be automating
- 8 digital transformation mistakes (and how to fix them)
- 8 IT cost cutting mistakes you need to avoid
- Why IT-business alignment still fails
- CIO resumes: 6 best practices and 4 strong examples
- 4 KPIs IT should ditch (and what to measure instead)
- 6 practices of influential IT leaders