Despite the estimated slowdown in the Asia-Pacific region, Intel registered a slight increase in its revenue from these markets. While in the second quarter of 2011 the Asia- Pacific region contributed around 57% to Intel's overall revenue, the contribution increased slightly to 58% in the second quarter of 2012.
Intel constitutes over 80% of the global PC market and its microprocessors command a certain premium over competitors such as AMD. The relatively cheaper price of AMD microprocessors could give it an edge in leveraging growth in demand for lower priced PCs from emerging markets.
However, while AMD registered a decline in its revenue in the second quarter, mainly on lower-than-expected growth from China, Intel registered a 5% increase in revenue from the Asia-Pacific region.
Intel has not lowered its microprocessor price, as was speculated for a long time, but yet it claims to have managed to increase market share in cheaper laptops and desktops.The growth in Ultrabooks helped Intel achieve its volume goals in the first half of 2012. Intel expects Ultrabooks sales to reach 40% of its consumer laptop sales this year. With over 140 Ivy Bridge designs in the pipeline, it looks like an achievable target. Intel looks confident of delivering the $699 design by this fall, which we feel could further boost sales of Ultrabooks, especially in the Asia-Pacific region. Since its second-quarter earnings, we have extended our forecast period until 2019 and revised
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