Tags: intel | laptop | chip

Intel Forecasts Strong Sales on Laptop Demand

Tuesday, 18 Oct 2011 05:16 PM

Intel Corp., the world’s biggest chipmaker, forecast fourth-quarter sales that exceeded some analysts’ estimates, citing strong demand for laptop computers in emerging markets.

Revenue will be $14.7 billion, plus or minus $500 million, Intel said in a statement Tuesday. That compares with $14.2 billion, the average of analysts’ projections compiled by Bloomberg. Gross margin, the percentage of sales left after deducting production costs, will be about 65 percent.

Intel said sales of notebook computers are driving earnings, with unit growth at a percentage in the double digits. The forecast defied analysts’ predictions that consumers are turning away from laptops in favor of tablets and smartphones. Intel also may have benefited from a failure by rival Advanced Micro Devices Inc. to supply enough of its own new chips.

“The emerging markets, as the technology we sell becomes more affordable, are generating significant growth,” Intel Chief Financial Officer Stacy Smith said in an interview.

The company also boosted its stock-buyback program by $10 billion. Intel shares rose as high as $24.60 after the report. Earlier, the stock increased 0.5 percent to $23.40 at the close in New York. The shares have gained 11 percent this year.

AMD, Intel’s main challenger in PC chips, last month said manufacturing glitches at a plant in Germany were hurting production of its processors for PCs and servers.

PC Market Dominance

Third-quarter net income rose to $3.47 billion, or 65 cents a share, from $2.96 billion, or 52 cents, a year earlier, the Santa Clara, California-based company said. Analysts on average had estimated profit of 61 cents. Sales increased 28 percent to a record $14.2 billion, compared with an average prediction of $13.9 billion.

Gross margin, the only measure of profitability that Intel forecasts, was 63.4 percent in the third quarter. The company’s division that makes PC chips reported a 22 percent increase in sales to $9.4 billion. Revenue in its Data Center Group, which supplies server chips, grew 15 percent to $2.5 billion.

Intel’s chips are in more than 80 percent of the world’s PCs, though the company has failed to parlay that dominance into orders for mobile phones and tablet computers, where chips based on ARM Holdings Plc technology have the majority of the market.

The PC market will grow 4.2 percent to 361.6 million units this year as consumers buy fewer machines, according to market researcher IDC. In the same period, the smartphone market will jump 55 percent to 472 million units, making it bigger than PCs by that measure for the first time, IDC said.

Intel said three months ago it expected the overall market for PC shipments to grow 8 percent to 10 percent this year, down from an earlier forecast for percentage growth in the “low double digits.”

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
Intel Corp., the world s biggest chipmaker, forecast fourth-quarter sales that exceeded some analysts estimates, citing strong demand for laptop computers in emerging markets. Revenue will be $14.7 billion, plus or minus $500 million, Intel said in a statement Tuesday....
intel,laptop,chip
457
2011-16-18
Tuesday, 18 Oct 2011 05:16 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved