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Emerging markets like Latin America contribute to more than 50% of US chip manufacturer Intel's business, owing to growing consumer demand coupled with increasing affordability of technology products, Stacy Smith, CFO and senior vice president of Intel (Nasdaq: INTC), said during a conference call with investors.
"The dynamic that's going on there is really one of economics. The desirability of technology is high and the affordability of technology is now coming into the range where, when we look across markets like China and Latin America, you've got a couple of billion consumers. Now the price of a PC is within 1-2 months' income. We think this is something that has legs and will drive our growth into the future," Smith said during the presentation of Intel's 1Q11 results.
For the first quarter of the year, Intel announced a 29% increase in net profits to US$3.2bn, compared with US$2.49bn for the same period last year. The company also reported revenues of US$12.8bn for the quarter ending March 2011, up 25% year-on-year and 12% sequentially.
For Q2, Intel forecast revenues of US$12.8bn, plus or minus US$500mn.
The company's shares on Nasdaq were up 6.45% to US$21.14 at time of print Wednesday, on higher-than-expected reported earnings.
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