Intel Delivers Strong Q4 Results, Cites Return of Consumer Demand
Intel Delivers Strong Q4 Results, Cites Return of Consumer Demand
Posted 01/14/2010 at 6:05pm
| by Ryan Whitwam
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It looks like Intel really killed it in the fourth quarter of 2009, with revenue up about 28% year over year to $10.6 billion. These numbers are after the $1.25 billion settlement paid to rival AMD. Sales were so good, in fact, that Intel is proclaiming the return of consumer demand. ” We have seen a return of consumer demand and replenishment to normal inventory levels after the precipitous demand drop at the end of 2008 and beginning of 2009,” said Intel CFO Stacy Smith.
Intel is predicting continued momentum going into 2010. They are expecting revenue of about $9.7 billion this quarter. That’s nearly as much as the Q4 holiday shopping season. Wall Street’s own estimate is quite close at $9.35 billion.
Intel CEO Paul Otellini talked up Intel’s plans for 2010 in a call with analysts. He stressed the value of Nehalem and was looking forward to the introduction of the new 32nm process technology. He also held that Intel’s Atom processors would continue to dominate the low end of the market.
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TechJunkie
January 15, 2010 at 12:20pm
Give me a break. Intel's numbers are up because of the strong arming of said companies for prices of thier CPU's to not use AMD. If 1,000,000 laptops/netbooks/desktops were assembled, but because of the tactics used by intel, those companies (before the settlement) only built 10,000 AMD products, the bottom line for intel for the quarter would skyrocket....like they always have...due to malicious acts. No wonder Intel has the cash for better R&D than AMD.
jbwhite99
January 16, 2010 at 2:34pm
The real reason that Intel profit went up is the same reason that Microsoft's will go up. They introduced a new platform (LGA-1156). This quarter so that on the mobile side. Intel does have price reductions baked in well in advance - google Intel 2010 roadmap. You are correct in that Intel doesn't have AMD competition this year, but it seems like they may have it next year (2011) so it is up to Intel to make hay while the sun shines. Also, the PC market grew significantly (10%+) in 4Q - companies like Lenovo (who just announced AMD Thinkpads for the first time ever) had 40+% increases in sales.
To the editor of this article, the $1.25b number would have impacted Intel's profits, not their revenue. Please check that part of your article.
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