Intel says PC market has reached the bottom

Intel has dared to suggest that the PC sector has fallen as low as it can get after its earnings for the first quarter came in ahead of expectations

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By  Andrew Seymour Published  April 15, 2009

Intel has dared to suggest that the PC sector has fallen as low as it can get after its earnings for the first quarter came in ahead of expectations.

“We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns,” declared Intel CEO and president Paul Otellini. “Intel has adapted well to the current economic environment and we’re benefiting from disciplined execution and agility.”

Intel registered a net profit of $647 million during the first quarter, a 55% decline on the same period last year but still considerably better than Wall Street had anticipated.

Revenue fell 13% sequentially and 26% year-on-year to $7.1 billion as sales of Atom microprocessors declined and average selling prices remained flat.

Intel said quarterly restructuring and impairment charges came in at $86 million less than it predicted, while it reduced inventories by $700 million as it took steps to work through excess stock.

In a conference call following publication of the results, Otellini told analysts: "I believe the worst is now behind us. We saw order patterns strengthen throughout the quarter. Desktop sales appear to have hit bottom first and have followed a normal — more normal — pattern since early February.”

Intel said the consumer segment continues to demonstrate more strength than the corporate market, particularly in the mini-PC space where sales remained buoyant.

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