Intel Profits Increase Significantly

Microprocessor manufacturer Intel has today announced substantial growth in their profits over the last quarter, predominantly as a result of an increase in demand for laptops worldwide.

The world’s biggest microchip manufacturer has reported an increase of 43% in its takings beyond expenses, which it has put down to strong sales of laptop computers carrying its chips and increased efficiency within cross operation cost centres.

Intel have been widely credited as the first brand to appeal to consumers in the microprocessing market, and it has seen stable growth in revenues as a result over the last few years. The figures today reflect a continued growth in its sales off the back of branding inline with consumer markets.

The figures released today showed an increase in profits net to just under $2 billion, up from just $1.3 billion this time last year. Revenues for the quarter were up to $10 billion, up 15% from last year, and leading to heightened profitability as a result of cost savings.

Chief Executive of Intel Paul Otellini said that today’s results had exceeded their previous expectations, and that this kind of performance was likely to continue over the end of this year.

Revenues are expected to continue to grow over the fourth quarter, which has led to upwards price pressure on Intel securities on exchanges worldwide today. The news sees a turnaround in fortunes for Intel who had previously been feeling the effects of a long drawn price battle with competitor Advanced Micro Devices, which posed a significant threat to market share.

It remains to be seen whether Intel will see the forecast strong growth materialise over the remainder of the year into 2008, and whether they can continue to fend off price reductions from their competitor base.

Story link: Intel Profits Increase Significantly