Chart: Intel's (Nasdaq: INTC) Growth in Emerging Markets

by Justin Dove

Chart: Intel's (Nasdaq: INTC) Growth in Emerging Markets

by Justin Dove, Investment U Research

Friday, October 21, 2011

Some people refer to the current state of technology as the "post-PC era." The emergence of smartphones and tablets is supposed to eventually crush the PC market. But this chart, from TechInsidr blog, may lead one to believe that the rumors of the PC's demise are greatly exaggerated.

According the author, Intel (Nasdaq: INTC) is not only surviving in the post-PC era, but is actually growing, mostly thanks to its growth in the Asia-Pacific region, Japan and Europe.

Intel Revenue by Geography

Because Intel failed to gain traction in the area of smartphone and tablet chips, it leads one to conclude that PCs aren't doing as badly as most claim.

"Emerging markets are good, enterprise is strong, the mature market consumer is a little bit weaker," Intel CFO Stacy Smith told Reuters. "I'd say Europe was a little bit weaker than the U.S."

Although some of Intel's growth can be attributed to its high-margin enterprise and server chips, there's additional evidence from IDC that the worldwide PC market is still on the uptrend thanks to the Asia-Pacific region.

PC Market on Uptrend per Asian Growth

As shown above, Asia-Pacific PC shipments are still increasing by double digits. And Lenovo (OTC: LNVGY.PK) continues to expand its giant lead in the Asia-Pacific region, which is probably one reason it recently surpassed Dell as the world's No. 2 PC manufacturer.

Investors may want to rethink the idea that the PC is dead. The "post-PC era" doesn't seem to be bothering all the PC players. As for Intel, someone has to help build chips for all the data centers used in cloud computing.

Good investing,

Justin Dove

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