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Intel Profits Fall -- Finspreads

LONDON -- (Marketwire) -- 01/18/13 -- Finspreads - Intel, the world's largest maker of computer microchips, has announced a cut in its profits for the last three months of 2012. Net income over the last quarter of last year fell by 27 per cent to $2.7 billion, which still beat the figure that was forecasted by many analysts. Revenue was also down; falling by three per cent to $13.5 billion.

Sales of PCs containing Intel chips have suffered with the recent rise of smartphones and tablets, something which many analysts have used to explain Intel's drop in profits.

Intel had already predicted slow sales in the run-up to the final quarter of last year, and that the usual boost to revenue from Christmas sales would be small.

Paul Otellini, Intel's chief executive, said, "The fourth quarter played out largely as expected as we continued to execute through a challenging environment."

In a statement, the company said that it expects revenue during the first three months of 2013 to be around $12.7 billion, a figure slightly lower than the average forecasts of analysts.

The announcement has already had an effect on Wall Street, with Intel slipping 5.69 per cent to $21.39.

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