Intel Firing on All Cylinders

By Scott Ferguson  |  Posted 2008-01-15 Print this article Print

"It's very interesting that Intel is getting Silverthorne into lower-priced PCs," Feibus said. "It might pull down prices further, but it looks like it might be profitable for Intel. If you look at the pyramid for demand, it's the next layer, and what they give up in price they can make up in volume. Right now, it looks like all of Intel's 45-nanometer products are coming along. The company is firing on all cylinders."

Since introducing the first 45-nanometer Penryn chips in November, Otellini said the company has brought more than 30 different chips to the market.

While Intel's quarterly results might show the PC market slowing in the United States, Feibus said the worldwide market for desktops and notebooks will remain strong. Part of that is due to a weak U.S. dollar, which means customers in Europe and other countries, where the currency is stronger, will benefit from low-cost desktops and notebooks in 2008.

Read here Intel CEO Paul Otellini's views of the PC's future.

Otellini said during a talk with analysts Jan. 15 that about 75 percent of Intel's business comes from outside the U.S. market. While Intel is looking at the low-end and emerging markets, it will also begin to concentrate on the server market, where it has introduced several new processors. In contrast, AMD, its main rival, has failed to bring its quad-core Opteron chip to the market in significant numbers yet.

John Spooner, an analyst with Technology Business Research, wrote in a research note that Intel is likely to start 2008 on solid footing within the enterprise space, where margins are typically higher.

"TBR believes that, thanks to the strengths of its Core Microarchitecture and the relative absence of a competing quad-core Opteron processor from Advanced Micro Devices, to-date, Intel remains in a good position in the server space," Spooner wrote.

"Intel's server shipments, [driven] in part by sales of its quad-core processors, reached record levels in [the fourth quarter of 2007]. The company expects that trend to continue into 2008."


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