Mobile Devices a Key Driver for Growth at Intel: CFO
The turnaround in sales of personal computers and the rapid growth of mobile devices have been the main drivers for Intel’s continued strong earnings, Chief Financial Officer Stacy Smith told CNBC Tuesday.
“We saw the PC market recover ahead of every industry I was able to look at, ahead of cars and consumer electronics, and I think it points to how indispensable this technology has become in people’s lives,” Smith said.
The world’s largest computer chip maker easily beat first-quarter earnings estimates last weekdue to a growing demand for notebooks and improved sales as large firms spent more to upgrade.
Demand for Intel’s products should remain high through the rest of 2010 and produce larger profit margins, according to Smith, who added “inventory levels (for PCs) are appropriate as to how we see demand.”
The first-quarter success was a combination of “bringing a great set of new products to the marketplace,” an improvement in the firm’s cost structure and a better global economy.
The wider use of more personal devices, social networking and the way consumers are viewing content are also helping Intel’s growth, Smith said.