Intel Corp. on Wensday reported that its second quarter revenue rose 21%, well ahead of recent projection of Wall Street analysts, and issued an upbeat forcast for the current period.
Revenue for its unit that sells chips for PCs grew 11% from the year-earlier period, well ahead of recent estimates by market researchers that world-wide PC sales in the period rose less than 3% from last year.
Intel reported net income for the period ended July 2 of $2.95 billion, or 54 cents a share, compared with profit in the year-earlier quarter of $2.89 billion, or 51 cents a share. Revenue rose to $13.03 billion from $10.77 billion.
Intel’s CEO Paul Otellini said on a conference call with investors that the consumer business remains mixed: PC sales in emerging markets like East Asia and Latin America are growing strong, but sales remain soft in more mature markets like the United States and Europe.
Otellini said the company is feeling "increasing confidence" about the second half of the year, and he predicted "modest growth" of 8% to 10% for 2011. That’s down a bit from the company’s previous forecast, but in line with Gartner’s expectations of a 9.3% rise.
Intel’s processors are used in 80 percent of the world’s PCs, but mobile devices from Apple Inc’s iPad to Google Inc. Android smartphones are eating into laptop sales and Intel is struggling to gain a foothold in the fast-expanding mobile market.
To counter that threat, Intel unveiled a plan in May to build processors for a new category of notebooks dubbed ‘ultrabooks’ that cost less than $1000 and measure only eight-tenths of an inch thick. Intel Executive Vice President Sean Maloney predicted that by the end of 2012, forty percent of consumer laptops will be Ultrabooks.