Intel CEO Says Recession In PC Industry Is Almost Over

The Chief Executive of the world's largest semiconductor firm, Intel, has affirmed that the PC industry worldwide is likely to sell as many computers in 2009 as it did in 2008.

Speaking to Rory Cellan-Jones of the BBC, Paul Otellini said that "Considering the depth and breadth of the recession [that] is a pretty good result," adding that this is probably due to the fact that consumers consider computers as being "indispensable".

In another video interview with the Financial Times, he gave more details about what, in 2010, will cause PC sales to defy analysts and buckle the traditional downward trend associated with spending during a recession.

Windows 7 will almost coincide with the normal upgrade cycle of many companies and will cause them to start spending on computers in 2010. Next year will see the launch of Office 2010 and a number of technological breakthroughs like the arrival of DirectX11 that will bloom next year.

This will ensure that the traditional desktop sector as well as newcomers like netbooks and more powerful smartphones continue to bring billions of dollars of revenue to Intel's coffers.

He hinted at a change in Intel's strategy which could see the giant shift its focus away from desk-bound computing to more mobile. Under Otellini, the Centrino brand took off and the fact that Nokia and Intel have signed an agreement three months ago.

Our Comments

Intel profits have grown by nearly almost flatened over the past three years, although the company still generates $20.8 billion profits on £37.5 billion revenues. Otellini did not say whether revenues would increase next year, only that more computers would be sold this year. Windows 7 is unlikely to put as much strain compared to Vista which might convince many to use Intel products with lower ASP.

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