Intel, the world's largest chip maker, plans to deal with a severe decline in computer hardware sales in its usual fashion: by continuing to spend vast amounts of money on advancing its manufacturing facilities.
Like many companies tied to the PC market, Intel's immediate financial situation is deteriorating.
The company, based in Santa Clara, California, on Thursday reported a 90 percent drop in net income to $234 million, or 4 cents per share, for the fourth quarter. In the same period last year, it earned $2.3 billion, or 38 cents per share. Intel said the most recent quarter's results, which were in line with Wall Street's expectations, included a billion-dollar reduction in the carrying value of the company's investments in Clearwire.