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Australia bucking PC downturn trend: Intel

Intel has said it is experiencing 20 percent growth in the consumer sales in Australia, and it is being driven by 2-in-1 laptops.

Going against the grain of the sales decline in the PC industry, Intel has said the Australian market was flat to slightly up in the past year.

"We've had a really great year, and that's pretty much driven by the uptake of 2-in-1," Kate Burleigh, Intel ANZ managing director, told journalists yesterday. "Australia has one of the highest penetrations of 2-in-1s within the mobile range in the world.

"Where there's new and interesting form factors, it feels as if Australian consumers are happy to get in and start buying again."

Globally, Gregory Bryant, general manager of desktop client platforms at Intel, said he believes the market has started to stabilise.

"Inside the numbers, there are definitely pockets of growth, so 2-in-1s are a great example," he said.

Bryant also said that Intel has suffered not having a mainstream desktop offering in its Broadwell processor line.

"We haven't had a mainstream desktop platform in two years -- well, that doesn't help," he said.

"We had fourth-generation core, we skipped doing fifth-generation core on the mainstream desktop ... absolute mistake. While I'm the GM, it won't happen again.

"You'll see us ... be very focused on having an annual beat rate."

The PC industry is currently experiencing widespread decline, with Gartner saying it saw a 7.7 percent decline in sales during the third quarter. This follows a 9.5 percent slump in sales during the second quarter of the year.

Gartner pinned the slide on the strong US dollar.

"The global PC market has experienced price increases of around 10 percent throughout the year, due to the sharp appreciation of the US dollar against local currencies. In the third quarter of 2015, this continued to be a major cause for weaker demand in those regions," Mikako Kitagawa, principal analyst at Gartner, said.

Yesterday, Intel announced its earnings for the third quarter, with the company taking home $3.1 billion in net income on revenue of $14.5 billion. This time last year, Intel made $3.3 billion from $14.6 billion in revenue.

The datacentre group alone posted $4.1 billion in revenue, up 12 percent year over year. The Internet of Things group achieved sales of $581 million during the quarter, up 10 percent from the previous year.

Client Computing posted $8.5 billion in revenue, which was up 13 percent from the previous quarter, but down 7 percent from the same one last year. Software and services revenue remained flat, at $556 million.