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Intel profits up as chipmaker promises more investment

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Image caption Analysts want Intel to speed up moves into the chip market for tablets and mobiles

Intel's profits beat Wall Street forecasts despite the chipmaker warning last month that slower global PC sales might dent its figures.

Net profits in the last three months of 2011 rose 6% to $3.4bn (£2.2bn) on revenues up 21% at $13.9bn.

Floods in Thailand have hit supplies of computer hard drives.

Analysts want Intel to move faster into the tablet and mobile market and Intel promised on Thursday to spend more developing chips for new devices.

The company also said it would boost capital expenditure in 2012 to about $12.5bn, up from $10.7bn in 2011.

Intel president and chief executive Paul Otellini said 2011 had been an "exceptional" year.

"With outstanding execution the company performed superbly, growing revenue by more than $10bn and eclipsing all annual revenue and earnings records," he said in a statement.

He added: "With a tremendous product and technology pipeline for 2012, we're excited about the global growth opportunities presented by Ultrabook systems, the data centre, security and the introduction of Intel-powered smartphones and tablets."

Evercore Partners analyst Patrick Wang said: "The biggest surprise is the capex for the new year.

"They're investing to catch up and not only be at parity but exceed where the handset incumbents are."

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