Intel CEO Otellini Gives Optimistic Outlook - Page 2

During his talk, Otellini also said 45 percent of the 800 million PCs worldwide are three or more years old, which suggests a pent-up demand to refresh those systems. In addition, Microsoft is preparing to release the Windows 7 operating system later in 2009.

There also are a host of other opportunities, in such areas as netbooks, handheld devices, embedded devices and consumer electronics, each of which represents a $10 billion market opportunity, Otellini said.

It's in the mobile arena that Intel sees the most opportunity, Otellini said. "Mobility is where we think most of the growth is," he said, pointing to traditional laptops, netbooks and smartphones.

On the server side, he said he is seeing that despite the contraction in IT budgets, businesses are still anxious to buy systems that can save them capital and operating costs, which Otellini said plays into what Intel's "Nehalem" architecture can offer.

Intel in March rolled out the Xeon 5500 series of chips-code-named Nehalem EP-which are designed to give better performance and energy efficiency at lower costs.

At the high end of the server business, Otellini said sales of Intel's Itanium chip should continue to grow, particularly as questions arise over the future of Sun Microsystems' SPARC technology after Oracle buys that company.

Overall, the recession in some ways has been a boon for Intel, Otellini said. While other companies have cut back on spending and innovation, Intel has been able to make use of its strong cash position to continue pursuing its goals.

"While other companies have retrenched ... Intel is going to focus on where we think the market is going," Otellini said.