Intel Expects Earnings Recovery In 2nd Half Of '98
TOKYO (Nikkei)-Intel Corp. forecasts higher earnings for the latter half of the year, Sean Maloney, Intel's vice president and co-director of sales and marketing, said here Monday.
In an interview with The Nihon Keizai Shimbun, Maloney said he expects excess North American inventories of personal computers - the main reason for Intel's falling profit - to be eliminated.
Intel, the world's dominant producer of the microprocessors that are the core component of PCs, saw its consolidated profit drop by over 30% in the first half of the year.
Maloney also maintained that weak sentiment on the New York Stock Exchange will not directly affect PC sales in North America, the world's largest market for PCs. Growth in Internet connections is rapid, he explained, and there is no sign that corporate investment in information technology will fall.
PC sales remain sluggish in Asia, including in Japan, while the company expects sales in North America and Europe to remain robust. Worldwide, sales will increase 13-14% on the year, Maloney predicts.
Under its management strategy, Intel sees the development of PCs designed for easy Internet access as the key to its growth.
Maloney said Intel sees China as an important focus of its regional strategy.
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