Atom sales fall raises questions over Intel tablet ambitions

Intel reported record second quarter revenue of $13bn on the back of double digit growth in its PC client and data centre businesses, but its Atom product range aimed at netbooks and tablets declined 15%. The chip giant's revenue grew 21% year on year although net income enjoyed a more modest increa

tablets.jpgIntel reported record second quarter revenue of $13bn on the back of double digit growth in its PC client and data centre businesses, but its Atom product range aimed at netbooks and tablets declined 15%.

The chip giant's revenue grew 21% year on year although net income enjoyed a more modest increase of 2% to $3bn.

CEO and president Paul Otellini described the revenue figure as a "significant new milestone".

Growth was achieved on the back of strong corporate demand for Intel's most advanced technology, "the surge of mobile devices and Internet traffic fuelling data centre growth" and a rapid rise of computing in emerging markets, he said.

In a conference call after the results announcement, Otellini addressed the issue of Intel's future in the tablet market as it seeks to make inroads against ARM which has been the dominant platform up until now.

The company planned to be "hyper-competitive" for tablets and to "out-battery and outcompete" the ARM platform.

The overall market for PCs was consistent and healthy in the corporate space but soft in the consumer arena. Intel predicted PC unit growth would be around 8-10% but revenue would be higher because of the stronger performance in corporate PCs.

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