Atom microarchitecture buoys Intel revenue

Posted by Aharon Etengoff

Intel has reported "strong" third-quarter results despite the global economic recession. According to Intel CEO Paul Otellini, Atom microarchitecture revenue increased by 15 percent from the second-quarter to $415 million.

The company's Mobility Group also recorded "robust growth," with sequential revenue rising by 19 percent.

"We are bullish on netbooks and the Atom processor," Otellini said during a conference call with investors. "The netbook market is alive and well. It continued to grow nicely from Q2 to Q3 - and will grow again in Q4."

Atom processor

However, Otellini noted that the traditional notebook market remained one of Intel's "primary" drivers of revenue growth and emphasized that notebooks currently "enjoyed" a higher share than desktops.

Otellini also commented on his expectations for Intel's Nehalem-based servers. He said that companies have expressed interest in replacing 8 or 9 servers with a single Nehalem Xeon unit.

He explained that Xeon servers would allow businesses to improve system flexibility while significantly reducing energy consumption.

In addition, Otellini opined that Intel's Nehalem-based servers could one day "encroach" on the relatively small RISC [server] market.  

Intel SSD

Finally, Otellini confirmed that Intel's NAND Flash team was on the right path to creating a sustainable business with "good value" components and algorithms. He added that future platform "ideas" would utilize advanced NAND Flash and SSD technology.

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