During the fourth quarter, Asia-Pacific eclipsed the Americas as the greatest source of revenue for Intel Corp., the company has revealed.
The Asia-Pacific region, excluding Japan, accounted for 35 percent, or US$2.4 billion, of Intel's fourth quarter revenues in 2001, according to the company. The Americas, which includes the U.S., accounted for 33 percent ($2.3 billion) of Intel's fourth-quarter revenue, with Europe and Japan contributing 25 percent ($1.8 billion) and 7 percent ($490 million), respectively.
On Wednesday, Intel reported fourth-quarter net income before acquisition-related costs of $998 million, down 62 percent from a year earlier. Intel's revenue for the fourth quarter, which ended Dec. 29, was $7 billion, down 20 percent from the same period one year ago when Intel reported fourth quarter revenue of $8.7 billion. The most likely cause for the jump in Asia Pacific sales is an increase in PC and notebook manufacturing in the region, said Nathan Brookwood, principal analyst with Insight 64 in Saratoga, California. "Asia Pacific is certainly becoming the hub for assembly of many computer systems, including an awful lot of laptops," he said. "Therefore, Intel is shipping an awful lot of core logic to that region."
Whether that core logic, or even the end products, end up in New York, London or Taipei, the sales are chalked up as Asia Pacific sales, Brookwood said.
Another factor boosting Asia Pacific Intel sales could be the increase in notebook PC sales, he said. Processors are put in notebook PCs at the place of assembly, something that due to a difference in chip packaging doesn't always happen with desktop PCs, Brookwood said. Most notebooks are manufactured in Asia, and as notebooks steadily gain a larger piece of the PC market, more processors need to be shipped to Asia, he said.
One year ago, Asia-Pacific was a much smaller percentage of Intel's overall business, accounting for 25 percent, or $2.2 billion, of Intel's fourth-quarter revenue in 2000. At the time, the Americas represented 41 percent ($3.6 billion) of Intel's revenue, with Europe and Japan contributing 25 percent ($2.2 billion) and 9 percent ($783 million), respectively.