Intel earnings slide 35% to $1.3 bn
Intel, the world’s largest computer-chip maker, said third-quarter profit fell 35% amid price cuts and market share losses.
SAN FRANCISCO: Intel, the world’s largest computer-chip maker, said third-quarter profit fell 35% amid price cuts and market share losses.
Net income fell to $1.3bn from $2bn a year earlier, Santa Clara, California-based Intel said on Tuesday in a statement after the close of trading in New York. Sales slumped 12% to $8.74bn.
Chief executive officer Paul Otellini offered discounts to sell off older chips and make room for newer models to win back market share from Advanced Micro Devices (AMD).
Prices are improving now, and demand so far this quarter is holding up, Intel said. Intel shares had fallen 71 cents to $20.90 in Nasdaq trading and have declined 16% this year, making the stock the worst performer in the Dow Jones Industrial Average.
Otellini, 56, has started the largest overhaul of the chipmaker’s operations since the 1980s. The company will shed 10,500 jobs to help lower costs by as much as $3bn annually starting in ’08.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
