Intel’s Barrett Sees No Slowdown in World PC Market

LISBON (Reuters) – Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz),the world’s biggest microchip producer, expects no slowdown in globaldemand for personal computers despite economic problems in the UnitedStates and in other countries, Intel Chairman Craig Barrett said onWednesday.

He also told reporters in Lisbon, where he was to sign a draft dealwith the Portuguese government to make 500,000 cheap portable computersfor schools, that the company was upbeat on demand prospects forlow-cost computers and broadband wireless systems.

"We gave a relatively upbeat business forecast, saying that despitethe economic problems in the United States our business is sointernational that we didn’t see any slowdown in the PC market," hesaid.

Barrett said a range of economies have not been seriously affectedby the U.S. slowdown, providing hope that the crisis will have limitedimplications.

"We are seeing … that the slowdown in the U.S. hasn’t spilledeverywhere 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-costcomputers, Intel also remains bullish about the introduction of moredigital 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 againstIntel, Barrett said price reductions for microprocessors and computershave an "anti-inflationary nature" while prices are rising globally andalso said that was a testimony to high competition in the sector.

"It looks as the market is functioning as it should, because everyyear consumers are getting more for less. We continue to say that,please just look at the facts, don’t just listen to a competitorcomplaint," he said.

Intel lawyers have previously said that that new charges filedagainst the company by the European Commission could lead to higherprices for consumers.

The Commission issued additional charges against Intel earlier thismonth, saying the U.S. company had paid a retailer to refrain fromselling computers with chips made by competitor Advanced Micro DevicesInc (AMD.N: Quote, Profile, Research, Stock Buzz).

Last year, the Commission accused Intel of giving computer makersrebates to limit their use of rival AMD’s chips or avoid themaltogether.

(Reporting by Ruben Bicho, writing by Andrei Khalip, editing by Gerald E. McCormick)