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Intel CFO Stacy Smith re-iterated that Sandy Bridge was the fastest ramping product in the company’s history. He said lower throughput time and increased first quarter output allowed Intel to make up unmet customer demand. Smith also mentioned the company’s success in emerging markets in particular. “Gains in emerging markets made up for weak demand in mature consumer markets in Q1,” Smith said.
Otellini said Intel achieved double-digit growth across every major product segment in the market. In particular, he said revenue for Intel’s Data Center Group was up 32 percent, revenue was $2.5 billion, and operating profit came to nearly 50 percent. He said Intel’s embedded business grew 33 percent, its NAND flash business grew by 17 percent, and its Digital Home group grew 129 percent since last year.
Part of Intel’s success in the data center is due to the launch of single-socket Sandy Bridge Xeon products in Q1, which Otellini said saw strong early demand. Moreover, Otellini said data centers are connecting to the Internet one way or another, and that Intel has benefited from that shift.
“What we’re seeing is an explosion of devices that connect to the Internet,” Otellini said. “And Intel is a big part of this trend.”
Otellini said he expects Intel-based phones featuring the company’s upcoming Medfield smartphone processors to come to market in about twelve months time. He said Intel is on track to introduce 22-nm silicon process technology by the end of the year and said the company is continuing to follow Moore’s Law in executing its product roadmap. “It’s too early to call 2012,” he said. “But we see no reason for growth to be any different from what it was in 2011.”
As for differentiating its products from processors based on Cambridge, U.K.-based ARM’s chip designs, Otelini said Intel’s platforms offer features integrated into the microprocessor that involve high ROI investments, but also offer significant opportunity – including power management and performance.
“In terms of ARM, it isn’t just about the core,” Otellini said. “It’s about the other capabilities and the power envelope on the SOC. Intel’s advantage is a combination of robust compute architectures that can scale and a wider array of architectures that we bring in.”
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