Intel record $11 billion quarter: Atom sales dropping however

Intel have posted a record quarter, with a staggering $11.4 billion revenue. This is the first time in their history that they have broken the $11 billion revenue barrier and $3 billion of this is net income.

Intel chief Paul Otellini said that “these results were driven by solid demand from corporate customers, sales of our leadership products and continued growth in emerging markets.”

Intel's Atom processor is not selling well however thanks to the ultra low power ARM processor and Intels's own CULV processor which is much faster and seems to be widely adopted by the public. The drop in sales for ATOM processors and chipsets measured around 4 percent which is not healthy.

On a more positive note the PC and data centre markets have been very strong, with a 3 percent increase in the last quarter, helping to break revenue records.

Otellini gave a nod to Apple's iPad success and said during the earnings conference call “I know that the big question on everyone’s mind is how Intel will respond to new computing categories where Intel currently has little presence: specifically, tablets. We’re going to utilise all of the assets at our disposal to win this segment: the world’s best silicon process technology, the best compute architecture and our global scale.” He then also preceded to mention Intel solutions in the Windows, Android and MeeGo markets.

Otellini also highlighted the point that their recent purcase of Infineon would see the 3G mobile broadband technologies integrated within the Atom chipset over the next 3 years. Clearly they aren't yet giving up on ATOM, even though the sales are flagging.

KitGuru says: CULV seems to be the more successful platform, so should Intel ditch ATOM and focus on this platform entirely?

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