January 14, 2011

Intel Profits Soared In 2010

Intel, the largest microchip maker in the world, had what they are calling their best year ever, earning $3.4 billion in profits for 2010 and beating their previous year by 167%, according to BBC News reports on Thursday.

The British news agency said that the company took in a net profit of $11.7 billion for the year, beating market expectations by 8%. Their fourth quarter saw a net profit of $3.4 billion (a 48% increase from the same period in 2009), and for the year, Intel brought in $43.6 billion in revenue.

In comments released with the company's earnings statement and published in an article by AFP reporter Glenn Chapman, Intel CEO Paul Otellini said "2010 was the best year in Intel's history, [and] we believe that 2011 will be even better."

"The stand-out was the data center group," Otellini, whose company saw their stock value jump 2% to $21.75 a share following the release of the financial report, added. "Intel is positioned to benefit from the growth of the data center and cloud computing."

On Friday, one Intel executive touted the company's performance in China, India, and other Asian countries as one reason for their recent success.

"I look around and travel around and I see the emerging markets continuing to be quite good," Navin Shenoy, Intel's general manager for the Asia-Pacific region, told Baker Li of Reuters in a telephone interview.

"Income levels are rising, PC costs are coming down and broadband continues to be built up," Shenoy added, noting that the company had opened its first Chinese chip plant in late 2009. "In 1995 in China, it took about three years of income to buy a PC, but today only about seven weeks of income, and that's one of the fundamental reasons why we are bullish on the emerging markets."

In addition, last week Intel introduced a new generation on Core processors during the Consumer Electronics Show (CES) in Las Vegas. The chips, described by Chapman as "speedy"¦ chips that thwart film piracy and enable quick handling of data-rich video and games," were called "the best product we've ever built" by Otellini.


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