Intel profits hit by competition

Chipmaker Intel has reported lower sales and third quarter profits even though its performance has exceeded expectations. Its profits have been hit by its aggressive price cuts to fend off competition from rival Advanced Micro Devices.

The firm's profits fell 35 per cent to $1.3 billion (Rs5,9241 crore) in the quarter ended September as sales fell 12 per cent to $8.7 billion. However, its revenues are expected to be higher; Intel's own estimates are between $9.1 billion and $9.7 billion in the final three months of the year.

Intel says restructuring and associated costs and a write-off of the value of its old micro processing technology has contributed top the decline in the chipmaker's performance during the quarter.

The company says it is trying to boost efficiency by recovering market share, and jobs cut of 10,000.