Intel announces a leap of 8% in its revenue

Dubai: Intel, the world's largest maker of computer chips, on Wednesday announced third-quarter revenues of Dh37.4 billion ($10.2 billion), an increase of 8 per cent over the previous quarter.

The announcement helped alleviate some concerns that global demand for PCs is slumping. "Despite the economic outlook, we have had a record second quarter," said Sam Al Schamma, general manager of Intel's Gulf operations.

Intel's net income stood at $2 billion for the quarter, which represents a 26 per cent increase from last quarter, and earnings per share increased 25 per cent to 35 cents. While Intel does not break down its results on a regional basis, 80 per cent of Intel's revenue comes from outside the United States. Regionally, Al Schamma said demand is still high. "We're growing very strong. Demand in the channel is as strong as it could get."

According to Omar Shihab, a research manager for IDC, low PC penetration in the region is helping growth, with solid sales still expected in the notebook sector. "There may be some softening in the commercial market, but that doesn't mean a decline. There will still be growth," he said.

Intel is also seeing strong growth from its Atom line of processors, which are being used in lower-cost "netbooks," such as the Acer AspireOne and the Asus Eee. The processor line generated over $200 million in revenue in the third quarter. Al Schamma said the company is monitoring the growing use of the netbooks in the region very closely.

Demand for Intel processors in the Gulf region is also being driven by recent increases in oil prices, he said. The increased spending is expected to continue, despite recent dips in oil prices.