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Intel: Desktops still dominate over laptops

Chipmaker surprised at desktop PC resilience

The expected decline in desktop PC shipments as a result of growing laptop demand has so far failed to come to pass, according to Intel’s top executive in Asia said.

"Pretty much all of our forecasts have understated mobile [growth] and have also suggested that at some point desktop [growth] will flatten out or even start to decline," said John Antone, vice president and general manager of Intel Asia-Pacific.

"The good news is that mobile continues to grow a little bit faster than we forecast and desktop has not contracted," Antone said.

Predictions that desktop PC sales would decline as notebook shipments grow underestimated the demand from emerging markets. While desktop shipments in the Western Europe and the US have declined, the market for desktop PCs has shifted to emerging countries, where such systems continue to be in high demand, Antone said.

Intel, the largest provider of microprocessors used in PCs, saw its finances buoyed by growing demand for PCs. On Tuesday, the company said its second-quarter revenue was $8.7bn, up 8 percent over the same period. Second-quarter profit rose 44 percent over the same period last year, to $1.3bn.

The strong growth in mobile processor sales was largely due to the launch of Santa Rosa, an upgraded version of Intel's Centrino chip package.

Intel's desktop processor sales are harder to determine, as they are spread across different business groups. But Intel said desktop processor shipments were up during the second quarter, despite generating less revenue as a result of a price war with AMD that hit prices for low.

"That frontier of where computing is getting to continues to push forward, and so the overall total unit volume for desktops has continued to be slightly up. It hasn't contracted on a worldwide basis yet," he said.


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