Intel and Yahoo declines show need for shifts

YAHOO posted a seven per cent fall in quarterly revenues last night, in a sign that chief executive Marissa Mayer will require time to turn the web company around.

US chipmaker Intel also saw lower sales as the declining PC market took its toll, although other areas of the business performed strongly.

The declines highlight the challenges the two firms, dominant in the internet’s early heyday, face as people shift from using their computers to access the internet to going online via mobiles and tablets.

Since Mayer joined from Google in the summer, Yahoo has begun to focus on improving its mobile offerings, including spending $30m (£19.5m) on Summly, the news aggregation app firm founded by British teenager Nick D’Aloisio.

“I’m confident that the improvements we’re making to our products will set up the company for long-term growth,” Mayer said. Yahoo’s revenues for the first quarter fell to $1.14bn, from $1.22bn a year ago as sales of web adverts fell.

Intel, meanwhile, has struggled to offset a decline in PC sales, where its chips are near-ubiquitous, by breaking into smartphones, where the chip market is dominated by designs from British firm ARM Holdings. Its revenues dipped 2.5 per cent to $12.6bn.