Intel posts revenue surge but faces weak mobile reception

INTEL beat expectations to hit record full year revenues of $54bn (£34.9bn), it said yesterday, despite a challenging PC market and late entry in the mobile sector.

The chip manufacturer also announced that it would increase capital expenditure to $12.5bn in 2012, up from $10.7bn in 2011, in an attempt to catch up with rivals in the booming market for smartphone and tablet chips.

The company’s PC division contributed revenues of $35.4bn, up 17 per cent on last year, despite sluggish demand in the sector and damage caused by flooding in Thai hard drive factories.

Graham Palmer, Intel’s UK managing director, told City A.M. that the PC sector retained opportunities for growth as “penetration in the emerging markets is still very low”.

“The hard drive situation has created additional complexity for the first quarter but we’re looking for high single digit growth throughout the year and we’re bullish about our new products.

“Our offer in the smartphone market will be very strong and our partnerships with Lenovo and Motorola Mobility show our intent.”