The world’s largest computer Chip maker’s fortune rises and falls with swings in PC demand.

On Tuesday, Intel posted its 2nd quarter figures that showed a 25 percent increase in profit and record sales in the quarter.  Strong sale of processors for laptop computers is being considered a basic factor behind the hefty profit figures.
The results were contrary to analysts’ expectations and they assured Wall Street that Intel is bravely facing the lifeless domestic economy with its broad international access, healthy product array and manufacturing lead over smaller rival Advanced Micro Devices Inc. which decreases Intel’s cost of manufacturing chips.

“There are strong demands for Intel’s chips in all segments and all around the world” said Paul Otellini, Intel’s Chief Executive Officer.

After-hours trading, there was a 23 cents increase in Intel shares as it closed at $20.94. They had already increased 24 cents or to $20.71 even before Intel reported its figures.

According to Intel, in the three-month period that ended June 28, its net income was $1.6 billion (28 cents/share).
It was almost 3 cents per share higher than the expectations of survey conducted by Thomson Financial analysts.  It was almost 25 percent higher than the Intel’s previous year’s figures.

This increase in profits is being considered the result of increasing demand for laptops and their processors all around the world.




Intel has also switched to the latest manufacturing process that decreases the cost of making these chips.
Microprocessors, which are considered the electronic brains PC’s, Intel is a top supplier of them all around the world. It rules over microprocessor market with its 80 percent share, while on the other hand AMD owns hardly 20 percent of market share.

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