Intel defies analysts with strong forecast

INTEL last night forecast fourth-quarter sales that exceeded some analysts’ estimates, citing strong demand for laptop computers in emerging markets.

Revenue will be $14.7 billion, plus or minus $500 million, Intel said. That compares with $14.2bn, the average of analysts’ projections compiled by Bloomberg. Gross margin, the percentage of sales left after deducting production costs, will be about 65%.

Intel said sales of notebook computers are driving earnings, with unit growth at a percentage in the double digits. The forecast defied analysts’ predictions that consumers are turning away from laptops in favour of tablets and smartphones. Intel also may have benefited from a failure by rival Advanced Micro Devices to supply enough of its own new chips.