[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 18 July 2007, 02:22 GMT 03:22 UK
Intel withstands price pressure
Intel chip
Intel and rival AMD are fighting hard for market share
Profits at chip giant Intel have soared despite falling prices amid fierce competition from smaller rival Advanced Micro Devices.

In the three months to June, earnings at the world's largest chipmaker were $1.28bn (600m) - up 44%, thanks in part to a one-off tax gain.

Revenue was also better than forecast, rising by 8% to $8.7bn.

But price cuts and weak sales of its memory flash chips, used in mobile phones, hurt profit margins.

The US firm is currently in the process of creating a new company with private equity group Francisco Partners to manage its memory assets.

It is battling to retain market share as it continues a bruising price war with Advanced Micro Devices, which is due to release its second quarter earnings results later in the week.

Price cuts continue to hurt Intel
16 Jan 07 |  Business
Intel backs Vietnam in $1bn deal
10 Nov 06 |  Business
Competition erodes Intel profits
18 Oct 06 |  Business
Intel launches marketing makeover
30 Dec 05 |  Business
Intel eyes entertainment market
06 Jan 06 |  Technology

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

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific