Intel jumps on wearable tech bandwagon
Technology giant Intel tried to distance itself from a stagnating desktop PC industry after its second quarter results, saying that it has many more strings to its bow including TV, wearable technology and ventures in energy systems, retail and healthcare.
Intel met its earnings target on Thursday but cut its full-year revenue forecast amid slumping PC sales but Peter Gleissner, the managing director of Intel Europe told CNBC that the humble desktop was now "reinventing itself". Intel was adapting to that change, he said.
"PC stands for personal computer and you could even argue that even a phone and a tablet today is personal. And this is really the transformation that Intel is going through," he told CNBC Thursday.
(Read More: Intel cuts revenue forecast amid slump in PC sales)
The PC market contracted globally last quarter, with worldwide shipments falling almost 11 percent year over year, according to Gartner. But while that sector contracts, Gleissner said the aim for Intel is now "automobility" which includes wearable technology, tablets and smartphones.
Gleissner pointed towards a recent tie-up with Samsung as proof of that. In June, Samsung announced Intel processors would be used to power a new version of one of its top-tier Android Galaxy 3 Tablets.
Currently two-thirds of Intel's revenues are reliant of the PC market, indicating that this rebalancing for the company is some way off. Gleissner dubbed the PC market as "unpredictable", but added there was steady growth in cloud technology - where files are stored in massive data centers rather than on office servers and computer programs and functions run via the Internet.
(Read More: Lenovo Reclaims Top Spot as Biggest PC Maker)
The chip maker on Wednesday posted second-quarter revenue of $12.8 billion, while analysts had expected $12.9 billion. It also forecast revenue in the current quarter at around $13.5 billion, whilst analysts had predicted $13.73 billion, according to Thomson Reuters.
Shares in the firm closed 0.41 percent lower on Wednesday, after receiving a bounce on the open. Its stock is 17 percent up year-to-date at just over $24, and continues to show stability after its sudden fall after the dotcom bubble of 2000 when shares had traded at $74.
Gleissner said that Intel was also planning to compete with the likes of Amazon, Apple and Google in developing its own internet TV offering.
(Read More: IBM earnings beat forecasts, sending shares up 3%)
"It's one area we're testing, it's going to come out in the U.S. first, it's an IPTV type of value proposition." he said. "We have to see how it plays out in the U.S. market first."
—By CNBC.com's Matt Clinch. Follow him on Twitter @mattclinch81.