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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.


SEE ALSO
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Intel backs Vietnam in $1bn deal
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Competition erodes Intel profits
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Intel launches marketing makeover
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Intel eyes entertainment market
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