Intel CEO Paul Otellini tells investors and analysts that Intel's business in the second quarter has been better than expected, even before the important month of June. Otellini also says he has a more optimistic view than IDC on the PC business for the rest of 2009, and that there is pent-up worldwide desire to refresh PCs. During his talk, Otellini did not touch on the expected fine from the European Union for anti-competitive behavior against rival AMD.
It was an optimistic Paul Otellini who took the stage in front of investors
and analysts May 12 to talk about Intel's business.
A month after declaring during Intel's quarterly earnings announcement
the PC industry had bottomed out, Intel's president and CEO
said business has been exceeding expectations in the first few months of 2009.
"We are halfway through Q2. In terms of our order pattern and our
billing pattern, it's a little better than expected," Otellini said early
in his 45-minute talk.
While June is the key month for the second quarter, he described business as
"so far, so good."
Otellini's comments came despite the rumors that have circulated over the
past few days that the European Union is ready to slam
Intel with a hefty fine
-possibly in the billions of dollars-for antitrust
behaviors as a result of complaints from rival Advanced Micro Devices.
fine could come down as early as May 13.
Throughout the talk, Otellini painted a favorable picture of the state of Intel
and the industry, despite the global recession that has hammered most
In the PC business, Otellini said while IDC
has predicted that shipment volumes will be down by 9 to 10 percent in 2009, he
doesn't think it will be that bad.
"I'm getting increasingly comfortable that the dip here is not as
aggressive as they are showing," Otellini said.
And while 2009 will the most difficult year in a long time for the PC
market, he said he expects that business will return to a normal pace over the
next three years, swelling the volume of PCs globally to 400 million units over
the next few years.
IDC is also seeing a slowdown in the
contraction in the market. In a report issued May 12 before the Intel meeting,
the research company said while microprocessor shipments declined in the first
quarter at a higher rate than normal, the decline may be slowing.
"The PC processor market continued to reflect significant decline in
end demand for most of 1Q09," IDC
analyst Shane Rau said in a statement. "However, some inventory
replenishment by OEMs at the end of the quarter helped to slow the decline and
bring the quarter in at a level only slightly worse than typical seasonal