Intel, the world's largest chip manufacturer, has not adjusted its sales forecasts for 2013, despite a drop in first quarter revenue and a slump in PC sales.
Revenue for Q1 2013 was $12.6bn (£8.2bn), down from $12.9bn (£8.4bn) for the same period last year and down seven per cent versus Q4 2012. First quarter profits fell by 25 per cent year-on-year, down to $2bn.
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Despite the fall in figures, Intel remains optimistic about the second quarter, with revenue forecast to be $12.9bn, plus or minus $500m, and the firm's forecasts for the full year of 2013 remain unchanged, with the firm expecting a single-digit increase in revenue.
"Amid market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the company," said Paul Otellini, Intel president and CEO.
"We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems.
"The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace," he added.
Intel's first quarter report acknowledges a number of "risk factors" to its earnings expectations, including operating in "intensely competitive industries" and "customer acceptance of Intel's and competitors' products".
It marks the second quarter in a row Intel's profits have slumped, much of which has been attributed to a global decline in desktop PC sales, as the popularity of tablet computers such as the iPad continues to rise.
Intel is looking to boost its revenues in new ways, with the chip maker set to enter the video streaming service market later this year.
