“The worst is now behind us.” – Paul Otellini, Intel’s CEO

A few days old but still important…

Under The Bridge Intel’s net income in Q1’09 fell 55% Y/Y to US$647 million on sales of US$7.1 billion, down 26% Y/Y from $9.67 billion in Q1’08. Intel’s CEO Paul Otellini said in the company’s earnings announcement that, “We’re seeing signs that a bottom in the PC segment has been reached.” He also mentioned that PC demand from the US and China are recovering more quickly compared to Europe, Japan and developing markets. Intel is expecting revenues to be flat in Q2’09.

High Flying Netbooks Well, not really. Sales of Intel’s Atom chip, which powers nearly all netbooks fell 27% Q/Q to US$219 million compared to Q4’08. The reason behind the drop? High inventory. Once inventory drops Intel is expecting demand its Atom chips to rebound. Good news but not great.

Source: New York Times

Leave a Reply