Intel reports falling profits

Intel reports falling profits

Microprocessor industry giant Intel has come out with their latest revenue report and their fourth-quarter profit has plunged 39 percent.

Intel continues to suffer due to lower profit margins on their products considering they are facing intense competition from AMD.

Intel is also spending a lot on restructuring and this has taken a toll on their profits. However, there are some good signs as well as the company sold record numbers of microprocessors and flash memory chips during the quarter.

It also managed to beat analysts’ tepid expectations.

Intel reported that their net income for the period ended Dec. 30 was $1.5 billion. This was down from $2.45 billion recorded in the same period in the previous year.

Intel CEO Paul Otellini said in a statement: “Intel’s product and technology leadership yielded a strong fourth quarter with higher selling prices and record unit shipments in the fastest growing segments of the market.”