Intel Raises Earnings Forecast on Strong Demand for Business PCs

Paul Lilly

A sudden spike in business PC sales prompts Intel to adjust its outlook

Perhaps the death of Windows XP is having a greater impact on PC sales than analysts thought it would. Or maybe there's another reason why demand for business-class PCs is on the rise. Whatever the cause, stronger than expected demand for business PCs prompted Intel to raise its second quarter revenue forecast to $13.7 billion , plus or minus $300 million, compared to its previous forecast of $13.0 billion, plus or minus $500 million.

Intel also said it's now expecting "some revenue growth" for its full fiscal year, whereas previously the Santa Clara chip maker was bracing for a flat year. Strong demand for business PCs was also the reason for Intel's adjusted full-year outlook.

PC shipments have fallen for eight consecutive quarters , according to the latest data by International Data Corporation (IDC) and Gartner, which estimated PC shipments to be in the neighborhood of 73.4 million to 76.6 million units in Q1 of this year. Both market research firms believe the market is now starting to stabilize.

Intel will have more to say on the matter when it publishes its second quarter financial results on July 15.

Image Credit: Flickr ( Ted Murphy )

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