Intel Q3 Earnings Offer Hope to 'Jittery' Investors

By Erin Harrison October 19, 2011

Investors leery of the weakened state of the global computer market breathed a sigh of relief Tuesday after Intel announced its third-quarter results.

Net income rose 17 percent and revenue rose 28 percent, beating Wall Street analyst targets, the Associated Press reported.

Company officials said Intel set new records for microprocessor units shipped, EPS, earnings and revenue, which was up 28 percent year-over-year.  The world’s largest chipmaker reported revenues of $14.2 billion. Intel President and CEO Paul Otellini credited stronger sales of processors for laptop PCs and servers.

“Intel delivered record-setting results again in Q3, surpassing $14 billion in revenue for the first time, driven largely by double-digit unit growth in notebook PCs,” Otellini said in a statement. “We also saw continued strength in the data center fueled by the ongoing growth of mobile and cloud computing.”

Intel said that its PC Client Group revenue was $9.4 billion, up 22 percent year-over-year and its Data Center Group revenue was $2.5 billion, up 15 percent year-over-year.  McAfee Inc. and Intel Mobile Communications contributed revenue of $1.1 billion. In addition, the Santa Clara, Calif.-based company’s board of directors also voted to boost its stock buyback program by $10 billion.

However, even though Intel’s numbers show signs of encouragement, the Associated Press said “they’re unlikely to reflect a meaningful change in the underlying dynamics that threaten to keep computer demand sluggish into the foreseeable future.”

In related news, studies released by two independent research firms show that Hewlett-Packard holds the No. 1 position terms of PC market share, TechZone360 reported. Chinese computer maker Lenovo moved up the ranks to become the world’s second largest PC maker and Dell dropped from second to third place, according to figures released for the third quarter by Gartner and International Data Corporation.

PCs have taken a backseat to a range of other devices competing for shrinking consumer and business budgets with media tablets and other devices emerging and gaining traction, according to Jay Chou, senior research analyst with IDC’s Worldwide Quarterly PC Tracker.

And while tablets are not expected to replace the PC, they are certainly a “distraction,” said Loren Loverde, IDC vice president of Worldwide Consumer Device Trackers.


Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Rich Steeves

Executive Editor, Strategic Initiatives

SHARE THIS ARTICLE
Related Articles

Super Bowl Sunday - Game on for TV Everywhere

By: Bob Wallace    1/22/2015

NBCUniversal is using the largest annual live sports viewing stage - the Super Bowl - to pitch consumers the benefit of a cable TV subscription - by o…

Read More

Corporate Video Usage Widens and Gets Creative

By: Tara Seals    1/22/2015

At least 40 percent of organizations that use real-time video applications are employing it in more than a dozen use cases.

Read More

Eat Your Heart Out Apple: Dell Tablet to Film Hollywood Movie

By: Rob Enderle    1/19/2015

I don't mean the tablet will be used in the film, I mean it will be used as the camera to create the movie. The tablet in question is the Dell Venue 8…

Read More

Obama Administration Wants To Crack Down On Fruits Of Hacking

By: Oliver VanDervoort    1/19/2015

The law also makes it a felony to traffic in information such as passwords and trafficking will now include posting a link. Basically, the new law wou…

Read More

OneWeb Satellite Broadband Venture Secures Funding, Generates Questions

By: Doug Mohney    1/16/2015

Will the world be surrounded by the largest satellite network ever created? OneWeb, formerly known as WorldVu Satellites, secured an undisclosed amoun…

Read More