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Intel to Benefit from Smart Phone Popularity

Mon May 23, 2011 - 1:25 PM EDT - By Annie Latham

A Bloomberg News story last week pointed out something interesting about Intel -- the company stands to profit from smart phones and tablets even though there's no "Intel Inside" the hot sellers.

Apparently, the popularity of smart phones and tablets is spurring the need for more servers, which run on Intel processors. That's what Intel's chief executive officer, Paul Otellini told analysts at the company's Santa Clara headquarters. Brazil, China and other developing countries also are fueling sales, he said.

Check out this fact:

The industry devotes one server to every 600 smart phones in use, and one to every 122 tablets, he said. That's helping push Intel's data-center sales to $10 billion this year, and they'll double to $20 billion within five years, he predicted.

Though this points to one revenue stream, it is no secret that Intel would like to profit more directly from demand for tablets and phones, a market where Intel's chips have lost out to rival designs.


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