Intel: "PC sales have hit bottom"

 

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By Stuart Turton

Posted on 15 Apr 2009 at 08:47

Intel has declared the worst over for a battered technology sector, after first quarter sales beat quarterly expectations.

Intel saw sales of $7.1 billion in its first quarter, which despite being down 26% on last year's figure, was still around $100 million higher than estimates.

Similarly, net income of $647 million was 56% down on the first quarter of 2008, but a staggering 175% improvement on the fourth quarter of last year.

"We are seeing signs that a bottom in the PC market segment has been reached," says Intel chief executive Paul Otellini. "I believe the worst is now behind us."

Despite that, Intel was conservative when forecasting second quarter sales, claiming figure were liable to come in flat at around $7 billion.

The company also admitted to being unsure whether the sales increase was due to a consumer uptake in PC buying, or simply due to computer makers replenishing their processor inventories after a couple of quarters of inactivity.

Intel also confirmed that it had rid itself of 1,400 employees since the fourth quarter.