Intel guides Q2 revenue higher on mobile chip strength

An Apple a day . . .

By Ashlee Vance in Chicago • Get more from this author

Posted in Financial News, 9th June 2005 23:47 GMT

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Intel today pushed its second quarter revenue forecast higher, saying strong notebook sales have boosted demand for mobile processors.

Earlier guidance from Intel pegged second quarter revenue to come in between $8.6bn and $9.2bn. That range has been narrowed and shifted up with Intel now saying revenue will fall between $9.1bn and $9.3bn.

Intel regularly provides mid-quarter updates to investors and analysts. Its second quarter ends on July 2.

Intel has benefitted from increased interest in notebooks by both business customers and consumers. Notebook sales last month outpaced desktop sales for the first time ever in the US, according to one report. PC makers have been pushing notebooks hard, as the systems tend to bring in more profit than desktops.

Along with upping its revenue forecast, Intel revealed that gross margins for the second quarter will likely come in a percentage point higher than expected at 57 per cent.

Intel has enjoyed a flood of press this week after announcing that it unseated IBM and Freescale as Apple's main chip-supplier moving forward. But you probably knew that already. ®