Intel Issues Murky Growth Outlook - Page 2

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Shifting segments

The shift to mobility seems to be accelerating, as mobile product revenues accounted for 45 percent of total revenues, or $4.7 billion total. That's an 18 percent improvement over $4.0 billion in 3Q07.

The Digital Enterprise Group, on the other hand, got a haircut last quarter, with revenue slipping 3.4 percent to $5.3 billion. Both microprocessor and chipset, motherboard and other revenue fell but operating income rose 28 percent, indicating that its tightening up costs.

Revenue from Intel Atom microprocessors and chipsets in the new netbook and nettop segments was about $200 million. Average selling prices (ASPs) dipped slightly but if Atom was removed, the prices were flat.

Intel also said the Americas accounted for slightly less of the total revenue picture in the third quarter, from 21 percent in Q2 to 19 percent, while the Asia-Pacific region rose from 51 percent in Q2 to 53 percent.

Otellini said the company expects more softness in corporate spending as IT spending "gets rationalized in this current economic climate." In general, he said consumer traffic is light in the quarter but it still sees healthy interest in notebooks and netbooks.

The mid-quarter update will come on December 4.