Intel warns of slowdown amid falling PC sales

Chip maker Intel warned of a slowdown over the next quarter as it announced its sales and profit for its latest three-month financial period.

Intel made sales worth $13.5bn and a profit of $2.8bn in its second quarter, which ended June 30. In the same quarter a year ago Intel made sales worth $13bn and a $2.95bn profit.

CEO Paul Otellini said the second quarter was strong because of datacentre work and multiple product launches in ultrabooks and its first Intel-branded smartphone. But he warned of a slowdown.

“As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment,” he said.

But Otellini was positive in the longer term: “With a rich mix of ultrabook and Intel-based tablet and phone introductions in the second half [of the year], combined with the long-term investments we're making in our product and manufacturing areas, we are well positioned for this year and beyond.”

PC sales are under pressure as consumers increasingly turn to smartphones and tablet PCs - areas in which Intel currently has little presence and are dominated by rivals such as ARM-designed chips.