If chips and processor sales are an indicator of the downstream health of
the IT marketplace, Intel chief Paul Otellini is signaling that PC and server
sales may have stabilized. He told analysts that Intel sales are “a little
better than we expected.”
Intel stock value jumped 3 percent in after hours trading following
Otellini’s remarks that personal computer sales had “bottom out” and beginning
to rebound. Additionally, he said semiconductor sales are beginning to improve.
Intel loses market share to AMD in Q1. Click here for full coverage.
Intel isn’t releasing guidance on its second-quarter financial performance
but is indicating that the second three months of the year will basically
mirror the first quarter that produced $7.1 billion in revenue. The first
quarter was down 26 percent from the same period in 2008.
Otellini’s optimism is welcomed news to the IT manufacturer and value-added
reseller communities, which have seen PC and server sales fall over the last
several quarters. IDC
recently reported that PC sales fell more than 7 percent worldwide
and slightly more than 3 percent in the United
States.
Since the beginning of the year, PC and server vendors have released a
series of new products at lower price points to meet end users’ decreased
budgets and buying power. In the Channel
Insider 2009 Market Pulse Report, solution providers reported desktop
and notebook PCs continue to be commoditized and profitability is declining.
Intel may be bullish on future prospects, but it's remaining mum on the
prospects of being hit with the heaviest fine by the European Union for alleged
antitrust activities against processor rival Advanced Micro Devices. Otellini
declined to comment on the potential of the EU levying a $1 billion-plus fine,
calling it “rumors.”
