LISBON (Reuters) - Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz),
the world's biggest microchip producer, expects no slowdown in global
demand for personal computers despite economic problems in the United
States and in other countries, Intel Chairman Craig Barrett said on
Wednesday.
He also told reporters in Lisbon, where he was to sign a draft deal
with the Portuguese government to make 500,000 cheap portable computers
for schools, that the company was upbeat on demand prospects for
low-cost computers and broadband wireless systems.
"We gave a relatively upbeat business forecast, saying that despite
the economic problems in the United States our business is so
international that we didn't see any slowdown in the PC market," he
said.
Barrett said a range of economies have not been seriously affected
by the U.S. slowdown, providing hope that the crisis will have limited
implications.
"We are seeing ... that the slowdown in the U.S. hasn't spilled
everywhere else. The world's economy is not as robust as it could be,
but it's not a disaster."
Apart from broadband wireless, and the next generation of low-cost
computers, Intel also remains bullish about the introduction of more
digital capability in health care.
"There's a huge opportunity to use it not just in the back-office but in remote diagnostics," he added.
Referring to the European Union's recent antitrust charges against
Intel, Barrett said price reductions for microprocessors and computers
have an "anti-inflationary nature" while prices are rising globally and
also said that was a testimony to high competition in the sector.
"It looks as the market is functioning as it should, because every
year consumers are getting more for less. We continue to say that,
please just look at the facts, don't just listen to a competitor
complaint," he said.
Intel lawyers have previously said that that new charges filed
against the company by the European Commission could lead to higher
prices for consumers.
The Commission issued additional charges against Intel earlier this
month, saying the U.S. company had paid a retailer to refrain from
selling computers with chips made by competitor Advanced Micro Devices
Inc (AMD.N: Quote, Profile, Research, Stock Buzz).
Last year, the Commission accused Intel of giving computer makers
rebates to limit their use of rival AMD's chips or avoid them
altogether.
(Reporting by Ruben Bicho, writing by Andrei Khalip, editing by Gerald E. McCormick)
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