Intel profits hit £1.5bn as firms up computer spending

Intel's profits nearly quadrupled in the first quarter, reflecting a surge in business spending on technology.

The firm earned $2.4 billion (£1.56 billion), leaving analysts to expect profits of 38 cents (25p) a share.

Sales of new chips for computer services lifted its figures, as companies began spending again after the recession.

Intel's chief financial officer, Stacy Smith, said demand for processors for high-end laptops was stronger than expected as corporations upgraded their workers' computers.

In the past few quarters Intel's growth was largely driven by consumer demand for netbooks - small laptops used mostly for surfing the internet for which chips are less profitable than for standard machines.

Smith also said the company expected to hire about 1,000 people this year worldwide. Intel has 79,900 employees, down from 82,500 a year ago.