Intel reveals fall in profits

<p>Profits are down for Intel.</p>

Intel has reported a big drop in its profits, with falling demand for PCs having a major impact on the state of its business.

The company announced that in the second quarter of the year it made $2 billion (£1.32 billion), which is down 29 per cent from a year ago.

Intel stated that revenues were also down by five per cent over the course of the quarter and the firm has cut its financial forecasts for the year as a result.

Rival company IBM has also announced a drop in its profits. Revenues were down by three per cent at the firm and its profits fell 17 per cent to $3.23 billion.

IBM's revenues and profit were found to be short of analysts' forecasts for the first time in eight years, indicating the company's future may be uncertain.

PC sales have been plummeting in recent years as a result of the rise of mobile computing, with tablets becoming an increasingly common choice for both consumers and businesses.

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