Intel Sales Predict Strong PC Demand
Back to school computer needs have put a bit of a squeeze on the semiconductor market, and Intel expects solid sales.
As computers go off to school in the fall, demand for the processors that power them rises too. That demand will drive Intel’s third quarter sales to as much as $10 billion, a Bloomberg report notes.
Despite soaring energy costs, with oil topping $65 a barrel again, and the aftermath of Hurricane Katrina, sales have not been affected. This could be partially attributed to a shift from desktop machines to laptops by consumers. Intel enjoys higher profit margins on its Centrino line, used in laptops, than on other processors.
Intel’s corporate gross margin will be over 60 percent, the company’s CFO, Andy Bryant, told analysts during a conference call. An analyst quoted by Bloomberg said Intel makes $70 to $80 more per laptop sold than it does with desktops.
Those laptops primarily ship from Taiwan, with nearly three-quarters of the laptops in the world produced there. Laptop shipments could hit 12 million units for the third quarter. After that, there could be some supply issues as increasing demand for Centrino chips could cause the company to miss some targets in the fourth quarter.
David Utter is a staff writer for WebProNews covering technology and business. Email him here.