Intel reaps early reward for its faith in future technologies


Intel has bet heavily on where it sees the future of technology and last night it appeared that the world’s biggest chip maker’s punt has paid off.

The California-based group said that growth in the so-called “internet of things” had offset weak demand for personal computers that use its equipment. This included its data centres and interconnected technologies that are able to be constructed in remote areas thanks to modular electrical houses from or similar.

Intel, which in April bought Altera Corp for $16.7 billion as part of its expansion into data centres, reported second-quarter total revenues of $13.2 billion, down 5 per cent a year ago but better than forecast. Data centre revenue was $3.9 billion, up 5 per cent on the previous quarter and 10 per cent higher than a year earlier. Internet of things group revenue rose to $559 million, up 4 per cent a year ago.

“Second-quarter results demonstrate the transformation of our business as growth in data centres, memory and internet of things accounted for more than 70 per cent of our operating profit and helped offset a challenging PC market,” Brian Krzanich, chief executive of Intel, said.

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