[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 18 October 2005, 22:46 GMT 23:46 UK
Intel profit up on steady demand
Intel sign at its HQ in Santa Clara, California
Intel's sales are at record levels
Chipmaking giant Intel, a bellwether for the technology and computer industry, said that third quarter profits rose, lifted by steady demand.

Net income rose 5% to $2bn (1.1bn) in the three months ending 1 October, from $1.91bn a year earlier. Sales during the period rose 18% to $9.96bn.

While profit was just below market forecasts, sales hit a record driven by sales of chips for notebook computers.

Intel expects sales of between $10.2bn and $10.8bn in the current quarter.

The company is still having problems filling demand, however, and while chief financial officer Andy Bryant was optimistic about its ability to meet orders some concerns have remained.

Tougher market

"You've got this supply issue and people want to see how they execute through the [current] quarter," said Apjit Walia, an analyst at RBC Capital Markets.

Shares of Intel lost more than 3% in after hours electronic trading in New York, signalling that the worries are unlikely to go away quickly.

Intel's financial position and status as the semiconductor bellwether may be in jeopardy
Apjit Walia
RBC Capital Markets

Intel is seeing good demand for its Centrino chips, which are used in laptop computers and let users connect to the internet and hardware, such as printers, without cables or wires.

Analysts warned that the company may see demand for its chips used in desktop, or stand alone, computers decline as consumers turn towards smaller and lighter products.

At the same time Intel is coming under increased pressure from rivals including Advanced Micro Devices.

"Intel's financial position and status as the semiconductor bellwether may be in jeopardy if it fails to find strategic opportunities in other faster growing markets such as communications and consumer electronics," said RBC Capital's Apjit Walia.

Intel PCs target the digital home
24 Aug 05 |  Technology
Laptop demand lifts Intel profit
19 Jul 05 |  Business
Apple Intel move 'could confuse'
08 Jun 05 |  Technology
Intel in Europe anti-trust raids
12 Jul 05 |  Business
AMD sues Intel for monopoly abuse
28 Jun 05 |  Business

The BBC is not responsible for the content of external internet sites


Americas Africa Europe Middle East South Asia Asia Pacific