Intel CEO expects PC sales flat or slightly better
Intel Corp Chief Executive Paul Otellini expects personal computer sales volume this year to “likely” at least match 2008’s, underscoring growing expectations that consumer spending is driving a mild recovery for the depressed market.
But with analysts expecting much of the fastest growth for Intel in future to come from non-PC arenas, Otellini stressed on Tuesday that software and embedded chip development would be crucial.
Intel plans to host a software applications development platform for its lower-end Atom microprocessor, which will allow developers to write programs that work across different devices and operating systems.
Otellini said Taiwan’s Acer and Asus, and PC maker Dell, would support the platform. Intel itself has no plans to get into the apps store business.
The company instead will provide the framework for developers to write software that can then be sold through others’ stores.
Otellini also talked about embedded electronics: microchips in car audio and communications systems, for instance, that can synchronize with computers and smartphones.
Intel has said that market represents a $15 billion opportunity. Otellini on Tuesday said BMW and Daimler would use a version of the Atom chip for in-vehicle information and entertainment devices beginning 2012.
On Intel’s core business, Otellini seemed to echo industry expectations of a flat to potentially better 2009 compared with last year, when PC sales fell off a cliff.
Otellini said the PC industry remains “alive and well” in the middle of the worst U.S. recession in 70 years, with unit sales seen at flat to slightly higher this year versus last.
Goldman Sachs this month raised its forecast for PC unit sales to “roughly flat,” compared with previous expectations for a 4 percent decline, citing resurgent consumer and government-education spending.
(Reporting by Clare Baldwin)