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| Version 1 | Version 2 |
|---|---|
| Price cuts continue to hurt Intel | Price cuts continue to hurt Intel |
| (about 1 hour later) | |
| Intel, the world's largest chipmaker, has seen its fourth quarter profits fall 39% as its price cuts continue to hurt its bottom line. | Intel, the world's largest chipmaker, has seen its fourth quarter profits fall 39% as its price cuts continue to hurt its bottom line. |
| Reporting its results for the last three months of 2006, Intel's net profit fell to $1.5bn (£765m) from $2.45bn a year earlier. | Reporting its results for the last three months of 2006, Intel's net profit fell to $1.5bn (£765m) from $2.45bn a year earlier. |
| Meanwhile, its revenues fell 5% from the same time last year to $9.7bn. | Meanwhile, its revenues fell 5% from the same time last year to $9.7bn. |
| Intel and its main rival, Advanced Micro Devices, have been involved in a price war over the past year. | Intel and its main rival, Advanced Micro Devices, have been involved in a price war over the past year. |
| Beats market expectations | Beats market expectations |
| Despite Intel's sharp dip in profits, the fall was expected, and the firm's results came in slightly ahead of market expectations. | Despite Intel's sharp dip in profits, the fall was expected, and the firm's results came in slightly ahead of market expectations. |
| The competitive pressures with AMD were more severe than we had thought Analyst Joanne Feeney | The competitive pressures with AMD were more severe than we had thought Analyst Joanne Feeney |
| Wall Street had been expected a fourth quarter profit of $1.44bn. | Wall Street had been expected a fourth quarter profit of $1.44bn. |
| Intel now expects sales of between $8.7bn and $9.3bn in the first quarter. | Intel now expects sales of between $8.7bn and $9.3bn in the first quarter. |
| A price war between Intel and Advanced Micro Devices' (AMD's) has proved to be bruising for both firms. | |
| Over the past year, Intel has seen its shares fall in value by almost 15%, while AMD's have lost nearly half of their value. | |
| Analyst Joanne Feeney of FTN Midwest Securities said Intel's latest results were indicative. | Analyst Joanne Feeney of FTN Midwest Securities said Intel's latest results were indicative. |
| "It indicates to us that the competitive pressures with AMD were more severe than we had thought and that Intel continues to struggle to regain its market share," she said. | "It indicates to us that the competitive pressures with AMD were more severe than we had thought and that Intel continues to struggle to regain its market share," she said. |