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Intel profits slide as chipmaker repositions
by Staff Writers
San Francisco (AFP) July 17, 2013


Intel Corp. said Wednesday profits in the past quarter slid by 29 percent as the chipmaking giant accelerated its efforts to focus on mobile computing.

The second quarter net earnings were $2 billion, down from $2.8 billion in the same period a year ago. Revenues also fell five percent to $12.8 billion.

Brian Krzanich, who was named chief executive in May, said Intel would step up efforts to gain ground in the mobile market.

"We will leave no computing opportunity untapped," he said. "To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast growing ultra-mobile market segment."

Intel is the world's biggest maker of chips for personal computers, but is struggling to make inroads in the surging marker for small, energy-sipping processors for smartphones and tablets.

The Silicon Valley giant said its new, low-power, high-performance Silvermont chip design unveiled in May could be used in segments ranging from smartphones to the data center.

The move by Intel overhauled its line of "Atom" processors which have made little headway in tablets and smartphones.

Still, Intel said its sales for the year will likely be flat, downgrading its forecast for modest growth of one to three percent.

Worldwide sales of personal computers dropped for a fifth consecutive quarter in the April-June period, the longest decline in the PC market's history, according to a survey by IDC.

The research firm said preliminary figures showed a worldwide drop of 10.9 percent in the second quarter.

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