Internet traffic key to glowing Intel future

Industry heavyweight Intel has filed its yearend figures, with full-year sales of $54bn (£34.8bn) and fourth quarter revenue of $13.9bn. Post tax profit at the firm was up by 13% to $3.4bn.

Industry heavyweight Intel has filed its year end figures, with full-year sales of $54bn (£34.8bn) and fourth quarter revenue of $13.9bn. Post tax profit at the firm was up by 13% to $3.4bn.

Intel's largest business unit, the PC client group, accounted for sales of $35.4bn, up 17% on 2010, while its Datacentre business also turned in strong growth, up 17% to $10.1bn.

The firm is hoping to improve on what president and CEO Paul Otellini described as an "exceptional" year during the coming 12 months, and is betting on new Intel-powered ultrabooks and smartphones to achieve this.

Said Otellini: "With a tremendous product and technology pipeline for 2012, we're excited about the global growth opportunities presented by ultrabook systems, the datacentre, security and the introduction of Intel-powered smartphones and tablets."

Internet traffic growth continued to power Intel's business, the boss continued: "As the volume of traffic crossing the internet continues to explode, companies and individuals are searching for simple ways to store, manage and access this flood of information.

"This mega-trend led to a fantastic year for our Datacentre group, with revenue up 17% on record microprocessor units, exceeding $10bn for the first time. But this wasn't just servers. Storage revenue was up 42% to a new record high, and our Embedded Communications Infrastructure business was up 18%, also to a new record high."

SeekingAlpha blogger Bill Maurer commented: "The future of chips appears to be in the mobile segment and possible ultrabooks, and ARM seems to have the edge there.

"However, Intel is the giant in the room, and I think that it is set up to do well going forward," he added.

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