Strong Processor, Chip Demand Spurs Intel Earnings

Intel recorded strong earnings in the second quarter of 2008 despite a drop in the average selling price of its chips.

The company's net income was up 25 percent to US$1.6 billion, or $0.28 per share, compared to $1.28 billion, or $0.22 per share, in the same period of last year. Analysts polled by Thomson Financial had forecast net income of $1.49 billion for the second quarter, which ended June 28.

Intel's net revenue was $9.47 billion, a year-over-year increase of 9 percent and beating analyst estimates of $9.32 billion.

Growth in demand for lower-priced notebook PCs resulted in a lower-than-expected average selling price of microprocessors, Intel said. However, demand for chips will continue to remain strong through the year, said Intel CEO Paul Otellini in a statement.

"As we enter the second half, demand remains strong for our microprocessor and chipset products in all segments and all parts of the globe," Otellini said.