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Intel raises second quarter outlook due to increased demand for business PCs

Companies are replacing PCs due to end of support for Windows XP
Fri Jun 13 2014, 13:44
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INTEL HAS RAISED its outlook for the second quarter and the full year 2014 because processor sales are increasing due to stronger than expected demand for business PCs.

Intel predicted that its sales this quarter will be $13.7bn, plus or minus $300m, higher than its earlier projection of about $13bn.

The updated outlook also sent the chipmaker's shares more than four percent higher in after hours trading, lifting hopes for a flagging PC market that has faced the growing popularity of smartphones and tablets.

"The company is forecasting the mid-point of the gross margin range to increase by one point to 64 percent, plus or minus a couple of percentage points, driven mostly by higher PC unit volume," Intel said.

The demand from companies for business PCs in particular most likely was driven by Microsoft's decision to end support for Windows XP in April, leading to more businesses in the market to upgrade their systems.

As a result of the boost in estimates this quarter, Intel now expects some revenue growth for the year, compared to its previous guidance that forecast approximately flat sales.

Intel has demonstrated stronger presence in the technology industry lately. For instance, Intel had the biggest impact of all the companies attending the Computex trade show in Taiwan this year.

Not only did Intel take the opportunity to unveil its latest Core M processor family, it also demonstrated some exciting innovations on stage in a keynote, such as A4WP wireless charging technology that got us excited when Intel said the standard will appear in laptops and tablets within the next two years.

Intel mostly stole the show at Computex this year, keeping the media busy with a variety of announcements. µ


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