Intel posts record summer despite PC worries, netbook slump
updated 05:35 pm EDT, Tue October 12, 2010
Intel makes record 11 billion in revenue in summer
Intel this evening reported its best ever quarter. In spite of warnings of a slowdown, its revenue reached an all-time high of $11.1 billion. Its operating income reached a similar high of $4.1 billion, although its net income was a more modest $3 billion.
The results reflected a further shift back towards regular computers and away from netbooks. Intel's traditional PC group saw its revenue up three percent after getting a record revenue from notebook processors; Xeon processors for servers saw a similar jump. The Atom chip and chipset group, however, saw its revenue drop four percent at the same time. Average chip prices were up "significantly" compared to summer last year, while the revenue for chips as a whole was up 25 percent due to higher prices.
Cautious optimism also dictated the company's expectations for the fall, where it expected revenue to climb slightly to $11.4 billion. The help would come from early shipments of its Sandy Bridge processors before they go on sale. It was hopeful for a bounce back for Atom but focused mostly on Google TV devices like the Logitech Revue and the Sony Bravia GT1 rather than netbooks.
The company didn't immediately discuss the suspected iPad cannibalization of PC sales but did admit there was "softness" in computer sales in the US and Western Europe, both main areas for iPad sales.
