Intel reported that it’s net income for the first quarter of 2012 was $2.7 billion, or $0.53 a share. This was a drop of 13.4% from $3.2 billion, or $0.56 a share, a year ago. Revenue was up slightly to $12.9 billion from $12.8 billion a year ago. Paul S. Otellini, Intel’s chief executive, said, “The first quarter was a solid start to what’s expected to be another growth year for Intel.”
Industry analysts are predicting a renewed demand for PCs and Intel is preparing to regain dominance of the computer chip market. Mr. Otellini said that chips for smartphones and servers in the second quarter would provide “a tremendous foundation for growth in 2012 and beyond.”
Intel reported that sales of chips for personal computers and servers were flat in the first quarter compared with the same quarter a year ago. Demand for chips for smartphones, tablets and ultralight laptops have been increasing, while demand for chips for traditional types of PCs has been weak.
Intel’s projection of higher growth comes from several factors. Intel’s chips for smartphones are expected to appear in more devices using Google’s Android operating system. Devices using Microsoft’s Windows 8 operating system could also employ Intel chips.
Intel is depending on increased demand for a new version of its Xeon chip in computer servers meant for cloud computing data centers, one of the fastest-growing segments in tech. Cloud computing involves accessing computing systems via computers and phones. Cloud computing is quickly becoming a standard for corporations.
Alex Gauna, analyst with JMP Securities said, “Intel failed to be the innovator on smartphones and tablets, but they can be the fast follower. In the next year they will go to leading-edge chip processes, they’ll have support from Android and Windows 8. They are putting good people on this.”