Chief Executive of Intel Corp, Mr Paul Otellini eased concerns related to technology spending, as he said that he doesn’t see unforeseen weakness in tech expenditures by Intel that was cited by the chief executive officer of Cisco Systems Inc, John Chambers, after he forecasted the quarterly earnings below predictions. After the comments made by Cisco System’s CEO, shares of the company declined by 10 percent. The decline came a day after Cisco posted its financial report.
Otellini said that the current quarter is going smoothly and just as the company had thought. Adding further, he said that the enterprise is good, but added that it is not fantastic but they are not looking nor hoping for that to change.
Paul Otellini said that John Chambers’ comments were more directed towards the European zone in particular. Adding further, he said that they haven’t seen any sort of change in demand in the euro zone in the enterprise area.
Paul’s comments came at a yearly investor day of Intel on Thursday. Otellini forecasted that the company will make it through as one of the useful and leading chip makers in the world as costs in the technology sectors increase due to stepping towards bigger and expensive factories. Most of the presentations that Paul showed at the conference included the anticipated move of Intel into the world of smartphones and ultrabooks. However, the company didn’t boost investors’ confidence when it came to PC sales.
Intel is spreading its territory in different regions and this will boost the company’s profits, some say, even though PC sales continue to suffer. Moreover, Stacy Smith, the Chief Financial Officer of the company said that he expects Intel’s gross margins in the coming year to stay at high levels at which Intel has been maintaining its margins – which is somewhere between 60-65 percent.