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Intel profit up 288% thanks to netbook backlash

updated 06:05 pm EDT, Tue April 13, 2010

Intel's early 2010 quarter prefers fast notebooks

Intel today posted first quarter 2010 results that were its best ever for the start of a year. The company made a record $10.3 billion in revenue and nearly tripled its net profit compared to a year ago, up 288 percent to $2.4 billion. Most of that was owed to high-end notebook processors, as its overall PC group was saved by all-time high mobile chip revenue.

Simultaneously, Intel's results showed just the opposite effect for netbooks. Revenues from the Atom processors used in the mini notebooks dropped 19 percent year-over-year to $355 million. Average chip prices were slightly hurt by the drop, however, as prices would have been flat without the existence of the costlier Pine Trail platform for Atom.

The results all but confirmed a sudden slowdown in netbook sales in the early part of the year and suggested the business may actually be on the decline. Intel didn't directly explain the shift, but an ongoing recovery from the recession and a more mature market are likely to give more buying power and greater interest in faster notebooks, especially following the addition of mobile Core i3, i5 and i7 chips.

The trend away from netbooks is likely to continue as Intel raised its profit margin estimates for the whole year from a range of 58 to 64 percent earlier to between 62 and 66 cents. Atom chips normally have much lower margins to help netbooks reach their frequently sub-$400 prices.

Intel's success is considered a bellwether for the computer business, as its majority stake in processors will help dictate what major PC makers like Apple, Dell and HP say in their own results due in the next few weeks.



By Electronista Staff
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Comments

  1. Flying Meat

    Dedicated MacNNer

    Joined: Jan 2007

    +9

    Ohthankgoodness.

    I was afraid they'd go under with all that competition. ;)

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +2

    Those piece of c*** netbooks

    were quickly destroying the American PC industry. It's good to see higher end computers coming back and that way Intel can show their higher-end chips' capabilities. Atom processors make me sick and I'm tired of hearing about them.

  1. Mr. Strat

    Junior Member

    Joined: Jan 2002

    +3

    Netbooks suck

    The sting of low quality remains long after the sweetness of low price is forgotten.

  1. climacs

    Forum Regular

    Joined: Sep 2001

    +3

    heh

    looks like the race to the bottom is over. Now, can we make a list of the idiots who thought that Apple was missing out by not making a netbook?

  1. PRoth

    Fresh-Faced Recruit

    Joined: Aug 2008

    +2

    Bellwether

    Good word, MacNN, where'd it come from? :)

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -4

    Re: Those piece of c*** netbooks

    were quickly destroying the American PC industry.

    There's an American PC industry?

    It's good to see higher end computers coming back and that way Intel can show their higher-end chips' capabilities. Atom processors make me sick and I'm tired of hearing about them.

    Yes! Three cheers for higher prices!!!

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -4

    backlash

    And how exactly is this 'proof' on the downfall of netbooks? Could it be that netbook makers might be picking other chips besides the Atom processor. Or that the prices of more powerful notebooks are coming down to the point one doesn't need to go all cheap?

    Oh, and the article MacNN here points to about the 'sudden slowdown'? Its a report that the growth in netbooks is ONLY 33% year over year, compared to the 872% from the previous year. Were they thinking netbook sales were going to keep increasing at triple digit percentages or something?

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