Purchasers behind surge in IT spend

16 July 2010

16 July 2010 | Angeline Albert

Chip manufacturer Intel has reported its best ever quarter, attributing the increase in business to corporate buyers spending more on IT.

Intel’s second-quarter financial report revealed revenue of $10.8 billion (£7 billion), up 34 per cent when compared with 12 months earlier. This is $466 million (£303 million) more than the revenue for the first quarter of 2010 and up $2.7 billion (£1.8 billion) when compared with the second quarter of 2009.

"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," said Paul Otellini, Intel president and CEO.

Meanwhile, research by Gartner confirmed a 20.7 per cent rise in the second quarter of 2010 in global consumer and corporate PC shipments, which totalled 82.9 million units.

In the US, Gartner said the business PC market received a boost from the cycle of companies replacing machines. Growth was also driven by healthy seasonal demand from the US public sector despite the drive to tackle the budget deficit. Small and medium-sized businesses, as well as large enterprises, are expected to increase IT spending in the second half of 2010.

“The professional PC market has been more affected by both the economic conditions and pricing stabilisation, and we expect demand to pick up in the second half of 2010,” said Ranjit Atwal, principal research analyst at Gartner.

He added: “While the first half of 2010 has been very strong and driven by the consumer PC market, the second half will increasingly be dependent on the business market.”

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