In another sign the recession is easing its chokehold on the tech industry, Intel CEO Paul Otellini said Tuesday that the chip business has improved since April, when he declared the personal-computer sales slump had "bottomed out."
"What we've seen so far is a little better than what we had expected," Otellini told analysts during opening remarks of a two-day conference at the company's Santa Clara headquarters. "So far, so good."
Otellini was vague about the extent of the turnaround and cautioned that the picture could change. But based on what the company is seeing now, he said recent economic assessments by research firm Gartner may have been too pessimistic. In March, Gartner predicted that shipments of PCs, many of which contain Intel's chips, would probably decline about 12 percent this year from 2008 levels.
Otellini also was upbeat about Intel's investments in new products, particularly in its relatively affordable Atom microprocessor, which is designed for low-cost netbooks among other devices. But in response to a question, he declined to comment on the fine — rumored to be in excess of $1 billion — that the European Commission is widely expected to level Wednesday against Intel.
The commission has conducted a long-running investigation of the chip maker based on a complaint filed in 2000 by Sunnyvale-based Advanced Micro Devices, Intel's chief competitor in the market for high-powered microprocessors. AMD has
accused Intel of using improper discounts, threats and other "dirty tricks" to deter computer makers from using AMD's chips.
Intel has steadfastly denied the allegations, insisting it merely provided legitimate discounts to reward customers for using its products.
Before Otellini's comments, Intel's stock price fell 16 cents to close at $15.21. But following his remarks, the stock rose in after-hours trading to $15.64.
