Intel has posted a year-on-year revenue increase of 22%, but warned it was trimming its PC sales forecast.
The chip maker posted quarterly revenue of $13.1 billion, over a fifth more than the same period last year and above analyst expectations for the tech giant. Profit was up 10% to $3.2 billion.
Intel’s gains in the second quarter were driven by the PC group, its largest segment, and the datacenter group, which has been expanding quickly, in part because of cloud computing.
However, the firm said it expects sales to slow in the PC market, predicting 8-10% growth this year, down from the low double-digits it had predicted earlier, in defiance of fears that market momentum was decelerating.
“The mature market consumer segment is still soft, but the emerging-market consumer segment is healthy and growing,” CEO Paul Otellini told analysts on a conference call.
Intel continues to struggle in mobile computing, however, with revenue from its Atom division sliding 15% to $352 million.
Otellini said he is confident tablets will not replace small laptop computers, even after Apple’s blockbuster iPad sales in the second quarter.
Otellini said Intel will be “hyper competitive” when it comes to supplying processors for tablets running Windows 8, which is unlikely to arrive before the middle of next year
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