The world's largest semiconductor maker has raised its second-quarter revenue forecast and said annual sales will increase for the first time since 2011, buoyed by improving business demand for personal computers (PCs). The company's shares rose as much as 6.6 per cent in extended trading.
The higher forecast provides another hint of optimism in the PC industry, where
"In the short- to medium-term, it looks like the market has stabilised, and business and corporate PCs are driving a lot of strength," said Ing, who has the equivalent of a hold rating on
Sales this quarter will be
Gross margin, or the percentage of sales left after deducting production costs, will be about 64 per cent in the current period. That's 1 percentage point higher than the company's prior prediction.
Analysts on average had estimated
Earlier this month, market-research firm IDC estimated worldwide PC shipments will decline 6 per cent this year, and said the drop may persist through at least 2018 as consumers increasingly opt for Internet-ready smartphones and tablets instead of desktops and laptops.
The researcher also said one bright spot for 2014 has been corporate demand, driven by replacements of computers using
To cope with the erosion of PC demand, Krzanich has made
New thinner and lighter laptops running the company's processors, some of which are almost as powerful as desktop machines, may attract consumers.
frustrated with the limitations of tablets and the lack of improvements in mobile-device capabilities, said Suji De Silva, an analyst at
"They have very good products and good momentum," he said. "The new form factors will be a longer-term help."
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