Chip Maker Expects Growth, but Investors are Cautious

Posted on April 24, 2012 at 3:24 pm by Amber Hemmer

Intel had people squirming when sales decreased in the first quarter of 2012, although it was somewhat expected. First off, it seems fairly common that sales in general tend to fall off a bit after the holidays, but with the muddled release of the Ivy Bridge chip, investors started getting nervous.

It seemed as Intel executives and company spokespeople really had no idea what was going on with the anticipated chip. The release date for Ivy Bridge was constantly changed and the amount of manufactured chips was always different. That has all seemed to fix itself with a little time, as an announcement is expected this week for the release of Ivy Bridge, followed by the staggered release of the chip.

So has everything settled down with Intel? Not exactly. Sales reports were released, and even though Intel’s sales did decrease in the first quarter of 2012, they still hit right around the projected target. Maybe they are gaining their footing back on the financial ladder.

Actually, Intel is used to massive revenue and breaking their projected profits quarter after quarter. But after their solid first quarter, the upcoming release of Ivy Bridge and the possibility of a smart phone release, Intel has upped the ante and estimated that the second quarter of 2012 will show greater gains.

Even though everything seems to be evening out and Intel has a few projects under their belt that will definitely aid in boosting profits, one still has to wonder what’s really behind the fall in sales in the first quarter. Is it simply due to the normal after-holiday sales decrease or did the flub behind the Ivy Bridge release take its toll on Intel’s stability?

The only way to really answer this question is to watch what happens in the near future. The second quarter 2012 sales will tell whether the release of the two projects boosts sales as expected, or if Intel has other problems. Hopefully they hit the mark in sales and investors can stop worrying so much.

Comments are closed.