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Intel prods PC market's corpse, corpse shouts 'I'M NOT DEAD!'

Chip giant raises revenue expectations after signs of life flicker in biz boxen

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Chipmaker Intel has raised its revenue expectations after discovering that the PC market is less moribund than it imagined.

Chipzilla said on Thursday that "as a result of stronger than expected demand for business PCs," it was raising its second-quarter growth revenue estimate from $13bn to $13.7bn.

"Intel now expects some revenue growth for the year as compared to the previous outlook of approximately flat," Intel said. "The change in outlook is driven mostly by strong demand for business PCs."

Along with this, Intel raised the mid-point of its gross-margin range to increase by 1 point to 64 per cent, though it also upped its expected tax rate for the second quarter to 28 per cent from its previous 27 per cent guidance.

This encouraging development comes after Intel said in its first quarter results that it glimpsed "signs of improvement in the PC business".

In the following months, some markets – such as the UK – did see renewed growth in PC sales, though the PC market in other regions – APAC, for example – did not fare so well.

Due to its overwhelming dominance of the PC and data center market, Intel is a bellwether for the wider IT industry. By raising revenue expectations, Intel has signaled that things may not be quite as grim in the global economy as they seem.

Though we're sure Intel is chuffed at the prospect of earning an extra $700m (give or take $300m) in the quarter, that won't be enough to offset the €1.06bn antitrust fine that was handed to it by the European Union on Thursday. ®

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