In the second quarter of this year, the net profit of Intel Corporation declined by 57 percent against that in the same period of last year and the corporation's operating income fell by 60 percent, according to Intel's fiscal report of the second quarter published on July 20th. Intel said price wars with its rival, AMD, will further influence its income.

The fiscal report shows that during the second quarter of 2006, Intel got an operating income of US$ 1.1 billion and a net profit of US$ 0.885 billion, both of which dropped dramatically compared to the data in the same period of last year. The company earned a revenue of US$ 8 billion which reduced by 13 percent against that in the second quarter of 2005.

In the report, Intel acknowledges that Intel is in a fiercely competitive market because of rivals like AMD and the high costs of Intel products is unlikely to go down in a short period of time. It is reported that under pressure from its unsatisfactory income, Intel took initial actions to reduce the prices of its products this year in order to keep customers from coming to ADM. Previously, it was ADM that usually declared price war in order to get Intel's customers.

By People's Daily Online