Upgrade cycle carries Intel to strong quarter

An upgrade cycle for corporate PCs and datacentres helped lift Intel to better-than-expected second quarter results

Chip giant Intel delivered a better-than-expected second quarter as it rode an upgrade cycle for corporate PCs and datacentres.

The quarter was carried by Intel's server chips and corporate demand. In other words, datacentre upgrades trumped any worries about anaemic PC sales. In a statement, Intel chief executive Paul Otellini said on Wednesday: "Strong corporate demand for our most advanced technology, the surge of mobile devices and internet traffic fuelling datacentre growth, and the rapid rise of computing in emerging markets drove record results."

Going into Intel's earnings report, analysts had significant questions about how the company would handle slowing PC sales and the decline of netbooks. Indeed, Intel's Atom revenue was $352m (£217m), down 15 percent from a year ago.

For more on this ZDNet UK-selected story, see Intel's Q2 shines: Server chips trump PC, tablet worries on ZDNet.com.

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