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Dell Technologies To Become New Name Of Combined Dell, EMC

May 4, 2016 by mphillips  
Filed under Computing

Dell’s planned $67 billion purchase of EMC will create a broad collection of businesses called Dell Technologies.

Under that banner, the pure Dell name will live on in the company’s client business, including its PCs, while its enterprise infrastructure division will be called Dell EMC, chairman and CEO Michael Dell announced on Monday at EMC World in Las Vegas.

Dell Technologies will be the only company selling everything from edge devices to core data centers and cloud infrastructure, a mission that rival HP backed away from when it split into Hewlett Packard Enterprise and HP Inc., Dell said.

He pitched the end-to-end strategy as a boon to customers who want a single partner that can do everything, letting them focus on business growth.

“You want technology made easier,” Dell said.

Dell Technologies will include all of what’s called Dell today, plus EMC’s core Information Infrastructure storage division, Pivotal, Virtustream, the partly public VMware and two security businesses: Dell’s SecureWorks and EMC’s RSA unit.

For EMC, owning a collection of semi-autonomous businesses and making them add up to something more is called federation, and it has come under attack from some investors and skeptics. On Monday, Dell called it a family and said Dell Technologies will be able to align its businesses and invest in new technologies at its own pace as a privately held company.

The acquisition is on track under its original terms and timeline, Michael Dell said. The deal still needs regulatory and shareholder approvals.

 

 

What Can We Expect From Smartphones In The Future?

May 4, 2016 by Michael  
Filed under Mobile

The smartphone market has hit a bit of a lull. Sure, they’ve got bigger and faster (that’s what she said) but it’s been hard to get really excited about new phones recently beyond the fact that, well, they’re new.

The iPhone 7 may – or may not – change this, but it’s more likely to be a new design, a slightly faster processor and maybe a new iOS version.

But what if we look further into the future, say 2020 or 2021, and devices like the iPhone 9 or Galaxy S9? What will hit the market then to get excited about? Mind-control text capabilities? Full 360-degree video filming? Bendable screens? Week-long battery life?

Battery life
Well, let’s start with the battery. Sadly, week-long battery life on a smartphone seems unlikely even by 2020, as Dr Kevin Curran, reader in Computer Science at Ulster University and a senior member of the IEEE, explained to the INQUIRER.

“On average, we only see improvements in capacity of six per cent per annum. So by 2020 we can only really expect a 25 per cent improvement in battery life,” he said.

However, while 25 per cent may sound good, Curran warned that these improvements tend to be offset by the fact the battery has to work harder as devices get more powerful and have higher density pixel displays.

Headlines proclaim major breakthroughs with battery technology, but Curran believes it’s unlikely that battery life will improve significantly, although there is work being done to change this.

“There are promising breakthroughs with regards to lithium-sulphur, supercapacitors, hydrogen fuel cells, solid state batteries and others, but history should tell us to be cautious about any new dramatic claims in having solved the problem of packing energy into a battery,” he said.

OK, so forget battery life. Surely there must be other new and exciting features to look forward to? Well, one technology is thermal imaging.

This was actually unveiled recently on the Cat S60 (pictured below), and Curran believes that other manufacturers will add this to their phones in time.

“This allows for a multitude of use cases, including detecting heat loss around windows and doors, spotting moisture and missing insulation, identifying over-heating electrical appliances and circuitry, and seeing in complete darkness,” he explained.

“This additional sensor allows much better control and depth in the photos you can take,” Curran added.

Meanwhile, analyst house CCS Insight has predicted that wireless charging will be standard by 2020, given that Apple is likely to include this technology in the iPhone 7.  That should save scrabbling around for charging points.

Courtesy-Fud

VeVo Hits 17 Billion While Calling Goof The Devil

May 3, 2016 by Michael  
Filed under Around The Net

Vevo might be the new MTV for millennials, who might not know MTV that played music a few decades ago. Vevo CEO Erik Huggers had an interview at a Hunter Walk blog talking about YouTube, subscription base and the future.

Vevo CEO, ex Intel and ex BBC executive Erik Huggers mentioned that the Vevo will get a subscription based service but for the time being the company will stay with add supported content. Huggers first worked first on the iBBC player and later at Intel OnCue, then Verizon before getting the Vevo CEO.

The company has announced a new Apple TV, iOS and Android applications for people who like to watch the content on the TV console or their tablets and phones. Huggers mentioned that Vevo was getting 17 billion unique views per month. He said that if you are musician you will prefer Spotify for audio streaming and Vevo to YouTube, and here is why.

Peter Mensch, the manager of bands including Metallica, Red Hot Chili Peppers and Muse  told a BBC Radio 4 documentary on the music business:

“YouTube, they’re the devil. We don’t get paid at all.”

The BBC quoted him saying that YouTube was killing the record industry.

There is now way you can say it better than this, Mensch obviously knows what he is talking about. When we dug a bit deeper into the issue, bands have issues with complete albums being uploaded to YouTube. The big bands don’t get paid at all, at least according to Peter Mensch.

Vevo might turn its back to YouTube, despite its current business model where the company uses YouTube to distribute its videos. We see a big change coming. Artists are obviously not happy as people are ripping their stuff and not paying.

Online publishing was an area where big mistakes were made 20 + years ago. Online magazines usually rely on marketing, same as YouTube, but it seems that YouTube, Facebook and other big social based website make a lot of money and giving YouTubers and artists pennies.

Huggers believes Vevo can offer a tailored experience which is personalised for individuals who love music videos via various channels including Apple TV or mobile applications. Imagine if Vevo starts offering exclusive concert footage of your favourite bands, this would probably be worth of a few bucks a month, wouldn’t it?

Courtesy-Fud

 

Greedy Billionaire Investor Dumps Entire Apple Portfolio

May 3, 2016 by Michael  
Filed under Mobile

Billionaire activist investor and Apple cheerleader Carl Icahn has dumped his entire stake in Apple because he thinks the writing is on the wall for the tech company.

Icahn has been a big fan of Apple since he started investing three years ago. He has also made a fortune out of his investment.  But he said that Apple’s glory days could be over because the company has become too dependent on the whims of the Chinese government.

Icahn, who owned 45.8 million Apple shares at the end of last year, said China’s economic slowdown and worries about how China could become more prohibitive in doing business triggered his decision to exit his position entirely.

He said that there was nothing wrong with Apple’s management and it was still a great company, “but you worry a little bit, maybe more than a little, about China’s attitude.”

He said that the Chinese government could “come in and make it very difficult for Apple to sell there,” Icahn said.

Earlier this month, China shut down Apple’s iTunes movies and iBooks stores within the country, following Beijing’s introduction of regulations in March imposing strict curbs on online publishing, particularly for foreign firms.

Icahn said that Apple stock is still pretty cheap but China could be a shadow for it.  He would have to look closely at what was happening in China before he bought another Apple share.

To be fair Icahn said that he had made $2 billion off the Apple trade and got a 48 percent to 50 percent total return which is not bad.

Apple shares have now declined more than 10 percent this week.

Courtesy-Fud

 

Are Tablets Dead?

May 3, 2016 by Michael  
Filed under Computing

There more evidence that tablets were never the game-changer that Steve Jobs tried to peddle them as, and were just the keyboardless netbooks we said they were.

IDC siad that for the first quarter of 2016, overall worldwide tablet shipments fell to 39.6 million, a 14.7 percent drop from the same period a year ago,  However the only part of the segment which did ok were tablets with keyboards – or as we used to call them, netbooks.

IDC said that the decline of ordinary tablets was partly due to traditional first-quarter slumps but also a complete lack of interest on the part of customers.

Traditional tablets accounted for 87.6 percent of all tablet shipments. But tablets that come with detachable keyboards increased of more than 4.9 million units last quarter. That was a gain of 120 percent from the same period last year and an all-time high for tablets with detachable keyboards.

Tablets are dying because more people are buying big-screened phones as an alternative. You remember Fablets? They were what Steve Jobs claimed would never work because they prefered smaller smartphones or bigger tablets. In fact he was talking rubbish and was trying to keep his keyboardless netbook idea going.

IDC said that the newer tablets don’t offer enough new features to entice people to upgrade. After all tablets were always looking for an app which made them useful, which never arrived.

To counteract the downturn, more manufacturers are turning to tablets with detachable keyboards that can thus serve as laptops – on otherwords returning to the netbooks that the Tablets were said to replace.

“With the PC industry in decline, the detachable market stands to benefit as consumers and enterprises seek to replace their aging PCs with detachables,” IDC senior research analyst Jitesh Ubrani said in a statement.

Apple saw its shipments and market share drop but remained in first place. Apple’s latest 9.7-inch iPad Pro and the new 256GB storage option for the 12.9-inch iPad Pro are “healthy additions” to the lineup, IDC said. Samsung also saw its shipments and market share decline. Though the Samsung Galaxy Tab lineup is still popular, its detachable TabPro S is dead in the water thanks to its $900 price tag.

Amazon has found success with its starting-at-$49 Fire, showing that consumers will still buy bargain-priced tablets. Missing from the list was Microsoft in spite of the popularity of its Surface Pro products, which start at $900.

IDC said:

“The Surface line is great. But it’s tough to drive volume in the first quarter. Prices of Surface products are fairly high, but Microsoft is in the top five list for tablets with detachable keyboards. The top five for tablets as a whole is a tougher nut to crack given the large slate volumes compared to detachables.”

Courtesy-Fud

 

TiVo To Be Acquired By Rovi

May 2, 2016 by mphillips  
Filed under Consumer Electronics

Online entertainment company Rovi plans to purchase digital video recording firm TiVo for $1.1 billion in a stock and cash deal, the companies announced on Friday.

TiVo has cloud-based technology for integrating live, recorded, on-demand and Internet television into one user interface, with search, discovery, viewing and recording options from a variety of devices. Its technology has been deployed by operators including Virgin Media and Vodafone Spain.

Rovi announced in March that Sharp’s new Aquos TVs would include its G-Guide electronic programming guide.

The combined company is forecast to have more than $800 million in revenue in the current year. More than 10 million TiVo-served households are expected to be added to the current base of about 18 million homes that use Rovi guides. The new entity will serve nearly 500 service providers worldwide, the companies said.

The deal between Rovi and TiVo, besides creating a large media and entertainment technology company with complementary products and services, will also lead to the setting up of a company with a worldwide portfolio of more than 6,000 issued patents and pending applications worldwide.

The two companies have a strong licensing business and have also sued key players like  Comcast for patent infringement in the past. The companies said they have more than $3 billion in combined IP licensing revenue and past damage awards.

The transaction is expected to close in the third quarter and the combined company will use the TiVo name. Tom Carson, CEO of Rovi will be the chief executive of the new company.

 

 

Is Motorola Going To Court?

May 2, 2016 by Michael  
Filed under Mobile

Lenovo owned Motorola has been slapped with a $5m class action lawsuit over allegations of shoddy customer service and not honoring warranty policies.

News of the lawsuit comes via Trusted Reviews, which learned this week that the complaint was filed against Motorola on 21 April in Illinois, accusing the company of “unfair, unscrupulous, immoral and oppressive” business practices.

The lawsuit’s main plaintiff, Douglas Lynch, decided to take legal action after a long-drawn out battle over a Moto 360 repair. He contacted Motorola for a replacement after the backplate of his smartwatch cracked, and was informed that a replacement would take four days to reach him.

The replacement failed to arrive, and Lynch was eventually sent a Moto 360 two months later that was a cheaper model than the one he had purchased.

Lynch isn’t alone in having a bad experience with Motorola. Girard Gibbs LLP, one of the law firms handling the case, told Trusted Reviews that Motorola owes “thousands of people” compensation.

This is evident on Reddit, where pissed off Motorola customers have flocked to tell similar stories.

One Redditor said:  ”I have had some of the worst support from them on my Moto G 3rd gen I bought last year.

“I tried to buy an extended warranty plan they supposedly offered, but their website was so jankedy that even after a few escalations over a FEW MONTHS to various higher ups in their support department with no resolution to the problem I finally just gave up and decided to never buy a Motorola phone again.”

Another added: “Wish someone would do the same in the UK as they wouldn’t replace my 6 month old 360 and I ended up having to pay about £120 to get it fixed when it was a hardware problem.”

Esfand Nafisi, an attorney at Girard Gibbs LLP, explained that the actual compensation owed is “likely higher” than the $5m referred to in the original filing, adding: “We want these issues to be resolved for all consumers.”

Motorola said in a statement: “Motorola has a long history of providing exceptional products and services to its customers. We are aware of the lawsuit, and are investigating the claims, which we believe to be without merit.”

Courtesy-TheInq

 

Apple’s Mac Slump Continues, Sales Tumble 12%

April 29, 2016 by mphillips  
Filed under Computing

Apple revealed that it sold 4 million Macs in the March quarter, a 12% decline from the same period the year before, and a larger contraction than for the personal computer business as a whole.

The year-over-year downturn in Mac sales was the second straight down quarter, and excepting a brutal 22% drop at the end of 2012, the largest since Apple introduced the iPhone in 2007.

Analysts at IDC and Gartner earlier this month pegged the continued contraction of the PC industry at 11.5% and 9.6%, respectively. Both also missed the actual Mac number for the quarter in their forecasts for Apple, overestimating by 11% to 13%: IDC had tapped shipments at 4.5 million, while Gartner said it was 4.6 million.

Apple had been on an extended streak of besting the PC average, with sometimes-impressive gains during the four-years-and-counting slump of the overall market. But the March quarter’s results put an end to the years-long run, which the Cupertino, Calif. company often touted.

Neither CEO Tim Cook or CFO Luca Maestri mentioned the end of the streak in Tuesday’s earnings call with Wall Street.

“It was a challenging quarter for personal computer sales across the industry,” said Maestri, stating the obvious.

Cook said that Mac sales “met our sell-in expectations” and added that he remained optimistic about Apple’s computer business, a sentiment a CEO is duty-bound to share. “We’re confident in our Mac business and our ability to continue to innovate and gain share in that area,” Cook said.

But Mac-generated revenue for the quarter was $5.1 billion, 9% lower than the same period in 2015, and the smallest amount recorded for the line in almost three years.

Macs accounted for 10.1% of Apple’s total revenue of $50.1 billion, but the computer group slipped to No. 3 on the company’s list, behind — by a country mile — the iPhone (accounting for 65% of all revenue) and, for the first time, the relatively new Services category, which contributed 11.8% of all incoming dollars.

 

 

 

Is Nintendo Making A Mistaking With The NX?

April 29, 2016 by Michael  
Filed under Gaming

Nintendo has confirmed that its next-gen console, the Nintendo NX, will launch in March 2017.

Causing many to screw up their Christmas lists, the company told shareholders during its earnings call on Tuesday: “For our dedicated video game platform business, Nintendo is currently developing a gaming platform codenamed ‘NX’ with a brand-new concept. NX will be launched in March 2017 globally.”

Probably also causing some to cancel a trip to Los Angeles, Nintendo said that the NX will not be demonstrated at the upcoming E3 video games conference in June, despite speculation that Sony plans to show off its so-called PlayStation 4.5 console.

Nintendo’s keynote at the games show will focus instead on the next Legend of Zelda game, which will launch simultaneously on the Wii U and Nintendo NX in 2017. Rumour has it that Smash Bros 4, Splatoon and Super Mario Maker are all set to receive an NX makeover too.

A launch is now less than a year away, but we still don’t know much about the Nintendo NX, which Nintendo confirmed this week is just a codename for the incoming console. However, rumour claims that it will arrive as a hybrid between a home console and a mobile games console to sit alongside the New Nintendo 3DS.

Nintendo president and CEO Tatsumi Kimishima reiterated in December last year that the company is “not building the next version of Wii or Wii U” and that the device will be something “unique and different”.

News of the Nintendo NX’s launch date no doubt came as the firm looked to play down the fact that its profits fell 61 per cent year over year. Worked, didn’t it?

Courtesy-TheInq

 

Twitter Troubles Continue, Misses Revenue Estimates

April 28, 2016 by mphillips  
Filed under Uncategorized

Twitter Inc  disappointed investors once again with first-quarter results that revealed stagnant revenue growth as the microblogging service struggles to grab new users amid efforts to improve its complicated interface with several new features.

Twitter’s user base grew modestly to 310 million monthly active users in the quarter ended March 31 from 305 million in the fourth quarter, above analysts’ expectations. But investors were let down by the revenue miss since outlining a turnaround plan.

“It’s obvious Twitter is having trouble,” said Arvind Bhatia, analyst with CRT Capital. “It’s not growing anywhere close to where people expected a while back.”

On a call with analysts, executives said advertisers, especially in Europe, held back spending ahead of major events, including the Olympics and the European Champions League. They also said users were spending more time watching and sharing video, but that advertisers’ budgets had not yet shifted from legacy advertising products such as promoted tweets.

Chief Financial Officer Anthony Noto said Twitter’s long-term goal was to have “millions of advertisers like our competitors.” Facebook Inc has more than 3 million advertisers.

Twitter has struggled with stagnant user growth as its complex interface makes it less attractive to new users.

As part of its turnaround plan, the company has emphasized its live offerings, including live commentary and video streaming through its Periscope app, to attract new users. But it faces fierce competition from Facebook Inc  which has recently ramped up its live video product, Facebook Live.

Chief Executive Jack Dorsey said that talent recruitment was a top priority for the year, especially on the engineering and product teams. Twitter lost several top executives earlier this year and has since added two new board members and a new chief marketing officer.

The company forecast revenue of $590 million to $610 million for the second quarter. Analysts on average were expecting $677.57 million, according to Thomson Reuters I/B/E/S.

First-quarter revenue rose 36 percent from a year earlier to $594.5 million, but widely missed the average analyst estimate of $607.8 million.

 

 

Apple Optimistic About iPhone SE Sales

April 28, 2016 by mphillips  
Filed under Mobile

After experiencing its first-ever drop in iPhone sales, Apple Inc sought to reassure investors by saying its latest and cheapest model was in strong demand after being launched in late March. Some retailers and suppliers in Asia aren’t so sure.

In a Reuters survey of 10 retailers in Hong Kong, Beijing, Shanghai and Shenzhen, seven – including four Apple Stores – reported solid early demand, but three third-party retailers said sales were weak. Two suppliers of components for Apple phones, including the new iPhone SE, said they were seeing lower orders.

“I’ve been dealing with iPhones for five to six years now. This current quarter for Apple feels weak,” said an executive at a Taiwan-based company whose components are used in iPhones including the SE model, which markets for $399. “Our current shipment situation for Apple is not like the last two years. There are more iPhone models, but the total volume of iPhones is falling.”

Such a mixed outlook from Greater China, its most important market after the United States and generator of a quarter of the company’s revenue, could be a major cause of concern for Apple.

The company’s revenue from the region, which includes Hong Kong and Taiwan, dropped 26 percent in the March quarter, making it the weakest region in the world.

“iPhone is still popular but sales have dropped because… there’s no new model and the SE is similar to 5C. So it doesn’t sell well,” said Zhu You Peng, a salesman at Apple product reseller Xiongyu in Shenzhen. The 5C was Apple’s last attempt to produce a cheaper phone, back in 2013.

Zhu said it sold around 300 iPhones per month last year but the number has dropped to around 100-200 this year.

That view contrasts with upbeat comments about the phone from Apple’s Chief Financial Officer Luca Maestri on Tuesday.

“The situation right now around the world is that we are supply-constrained,” he told Reuters, referring to the iPhone SE. “The demand has been very, very strong.”

The iPhone SEs are sold out in Apple’s own stores in mainland China and customers have to wait about three weeks to get the product delivered by Apple, according to Apple’s websites. The size of the original supplies to the stores is unclear.

 

 

 

Microsoft Kicks Off Two-for-one Lumia Phone Sale

April 27, 2016 by mphillips  
Filed under Mobile

Microsoft announced the launch of a two-for-one deal for its Windows-based smartphones, tossing in a free Lumia 950 when customers buy a $649 unlocked top-tier Lumia 950 XL.

The give-away will run until May 1, or while supplies last, Microsoft said on its e-store.

Last week, Microsoft told Wall Street that sales of its Lumia devices — virtually the only smartphones powered by Windows 10 Mobile — plummeted 73% in the March quarter compared to the year before, falling from 8.8 million in 2015 to 2.3 million in 2016. Revenue from its phone division fell 47%, to $662 million, in the first three months of this year.

More to the point of the two-for-one sale, on Thursday, Microsoft’s chief financial officer, Amy Hood, said, “Sell-through of our Lumia products was weak, and we exited the quarter with relatively high channel inventory.” Simply put, poor sales left more than the expected number of devices in stores and warehouses.

The buy-one-get-one-free deal may be Microsoft’s way of flushing out the current overstock.

Buyers in the U.S., Canada and Puerto Rico will receive a $549 unlocked Lumia 950 when they purchase an unlocked Lumia 950 XL. The latter is Microsoft’s top-of-the-line Windows 10 Mobile smartphone, which went on sale in November 2015.

The offer is limited to two Lumia pairs per customer.

Microsoft’s smartphone business continued to drag down the Redmond, Wash. firm’s overall revenue outlook. While Hood did not pin a dollar amount to Lumia’s impact on the June quarter, Microsoft’s final in its 2016 fiscal year, she acknowledged that, “We expect year-over-year revenue declines to steepen in Q4 as we work through our Lumia channel position.”

 

 

 

T-Mobile Revenue Up, Continues Attracting New Customers

April 27, 2016 by mphillips  
Filed under Mobile

T-Mobile US Inc reported a better-than-expected 10.6 percent rise in quarterly revenue and raised its forecast for customer additions in 2016 as popular discounts aided the No.3 U.S. wireless carrier by subscribers attract more business.

T-Mobile has been offering cheaper leasing plans and free music and video streaming to lure customers away from larger rivals Verizon Communications Inc and AT&T Inc.

T-Mobile, controlled by Deutsche Telekom, said it added 2.2 million customers on a net basis in the first quarter ended March 31.

That easily topped the average analyst estimate of 1.72 million, according to research firm FactSet StreetAccount.

The company said it expected to add 3.2 million to 3.6 million postpaid customers on a net basis in 2016, compared with its previous forecast of 2.4 million to 3.4 million.

T-Mobile’s 10.6 percent jump in quarterly revenue to $8.6 billion suggested its strategy to boost revenue was working. Analysts on average had expected revenue of $8.43 billion, according to Thomson Reuters I/B/E/S.

In comparison, market leader Verizon’s operating revenue rose just 0.6 percent to $32.17 billion.

AT&T is scheduled to report results later on Tuesday.

T-Mobile reported net income of $479 million, or 56 cents per share, for the first quarter, compared with a loss of $63 million, or 9 cents per share, a year earlier.

 

Netflix International Subscriber Growth Slows

April 21, 2016 by mphillips  
Filed under Consumer Electronics

Streaming video service Netflix Inc forecast U.S. and international subscriptions would grow at a slower pace than Wall Street expected this quarter, causing its stock price to tumble by 8 percent earlier in the week.

Netflix said it expected to add about 500,000 customers in the United States in the second quarter that ends in June, compared with Wall Street targets of 586,000, according to FactSet StreetAccount. The forecast includes a “modest impact” from the beginning of a price increase for its monthly movie and TV subscription service, the company said.

The company known for its original shows including “Orange is the New Black” and “House of Cards” said it expected to add about 2 million subscribers in markets outside the United States, versus analyst expectations of 3.5 million, according to FactSet. It also reported results for the first quarter, when subscriptions outpaced its own target.

Netflix is prone to large stock price swings as investors bet on the possible success of its mission to redefine television viewing around the world.

The company’s long-term results depend in large part on how fast and profitably it expands. Netflix has launched in almost every country in the world, at a substantial cost, and now faces the task of adapting the service to different markets and cultures as competitors also rush in.

In January, Netflix went live in more than 130 countries, a huge global push by Chief Executive Reed Hastings to counter slowing growth in the United States.

Initial sign-ups were limited in some countries because the service at this point offers only English-language content and does not accept all of the local payment options.

 

 

Intel To Cut 12,000 Jobs As PC Market Slowdown Continues

April 21, 2016 by mphillips  
Filed under Computing

Intel Corp announced that it will eliminate up to 12,000 jobs globally, or 11 percent of its workforce, as it refocuses its business towards making microchips that power data centers and Internet connected devices and away from the declining personal computer industry it helped found.

Tech companies including the former Hewlett Packard Co and Microsoft Corp have reorganized in the face of the PC industry decline. Many new tech users around the world turn to mobile phones for their computing needs, and corporations increasingly rely on big machines rather than desktop models to run their businesses. Global personal computer shipments fell 11.5 percent in the first quarter, tech research company IDC said on Monday.

Intel, the world’s largest chipmaker, lowered its revenue forecast for the year. It now expects revenue to rise in mid-single digits, down from its previous forecast of mid- to high-single digits.

Most of Intel’s factories are in the United States, although it did not identify where cuts would be focused geographically. It said it would record a pretax restructuring charge of $1.2 billion in the second quarter and expected annual savings of $1.4 billion per year starting mid-2017.

The company also said Chief Financial Officer Stacy Smith will move to a new role leading sales, manufacturing and operations. Intel said it would begin a formal search process for a new CFO.

Smith said that Intel now expects the PC market to decline by a percentage in the high single digits in 2016 versus a prior forecast of a mid single-digit decline. Declines in China and other emerging markets are also leading to greater than anticipated reductions in worldwide PC supply chain inventory, Intel Chief Executive Brian Krzanich said on a conference call.