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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (4820)	1/8/2003 8:22:01 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Intel Sees Slow Start to 2003 Tech Spend Wednesday January 8, 4:25 am ET SINGAPORE (Reuters) - Intel Corp., the world's largest chip maker, sees little improvement in technology spending in the next six months but hopes demand from new markets like China will drive an improvement in the second half, a top official said. "We don't expect a big uptick in spending in the first part of 2003," Tom Kilroy, Intel's vice president for sales and marketing group, told Reuters in an interview on Wednesday. "We are hopeful that overall, we will see a pick-up in the second half of 2003," he said. "We're very optimistic about the emerging markets, that's the exciting area... It will continue to outperform." Last month, Intel raised its fourth-quarter revenue outlook to $6.8 billion to $7.0 billion, from an earlier forecast of $6.5 billion to $6.9 billion, citing higher sales in Asia and stronger demand for its microprocessors. "More and more of our revenue is coming from emerging markets and the highest percentage of that business comes from the channel or independent system builders," Kilroy, said. Intel sells primarily to manufacturers of personal computers, but it also sells products to some 85,000 small independent system builders or those who build their own PCs or servers using Intel components. Aside from China, Vietnam and India as well as Southeast Asia fall under the emerging markets umbrella. Outside of Asia, Russia, Eastern Europe, the Middle East, and Latin America are considered emerging markets. About a third of Intel's revenue comes from Asia Pacific, which accounts for some 45 percent of Intel's overall channel business. "What we do know is that there's a more consistent spending pattern in Asia Pacific," Kilroy said, adding that governments as well as small businesses were spending on information technology. "When I look at 2003, I expect strong growth in China, in India and increasingly, a greater contribution to our growth from Southeast Asian countries," Kilroy added. In China, for instance, Kilroy said Intel plans to move into second- and third-tier markets outside of Beijing and Shanghai. The Santa Clara, California-based chip maker is also a leading manufacturer of computer, networking and communications products. "What we expect for 2003 is a significant growth pattern in the mobile segment," Kilroy said. "We will see a bigger growth curve in this emerging area, and if you look at over a four- to five-year horizon, I think you'll start to see a shift from desktop into mobile as convergence of communications and computing happens," Kilroy said. In the last several years, Intel has been working to boost revenue beyond its mainstay PC-related business, where it faces a maturing market in the U.S. and Western Europe.