Intel shows 90% profit drop
Intel reports that its profits dropped by 90 percent during the last three months of 08. Previously Intel reported its quarterly profit as $2.3 billion that dropped to $234 million during in the last three months of 08. According to the chip maker, low consumer spending for PCs is the biggest factor in this connection.
Intel is known as the world’s fourth biggest chip maker and the firm has given warning earlier this month about the 23% ($8.2bn) slump in the sales.
Intel has forecast meager $7bn sales for the 1Q of 09. According to some market analysts, because of economic gloom, domestic users have developed a habit of thinking twice before making a purchase of new PC.
The increasing popularity of tiny netbooks in which low profit margin chips are used also affecting the firm.
After these results Intel shares saw a 2.1% increase, as the investors got relived that results which were not as bad as were expected.
The intensity of this drop was seen in part in the write-down value of investment in the Clearwire Corp investment made by Clearwire Corp.
Clearwire has been working on a new kind of wireless broadband that Intel is considering for building in its processors, but the credit crunch seems to impede that and many other such business plan.
Related posts:
- FTC Releases Formal Query of Intel Chip Company
- A new graphics chip line is revealed by Intel
- Intel unveils new 160GB SSD
- Windows 7 Proved To Be Profit Booster for Microsoft
- Indian government shows security concern over RIM’s BlackBerry
