Barrett sees PC strength, telecom weakness

The global computer industry is picking up but the telecommunications sector is still stuck in a rut, Intel CEO Craig Barrett said Monday. "We have good visibility into most of the computer manufacturers around the world. We can see what their inventory levels look like. We anticipate the normal seasonal uptick in the second half--the back-to-school portion and then the holiday buying season at the end of the year," Barrett told CNN. Speaking from Taiwan, Barrett said manufacturers had reduced inventories to a manageable level. Chipmakers across the globe have been cutting capacity and prices to maintain market share in the face of a steep drop in demand. But Barrett said he would not describe the price-cutting as excessive. He said demand from India and China was buoying Intel's revenues in Asia, which account for about 30 percent of the chip giant's global sales. Intel had also enjoyed its best quarter ever in Latin America. "Some of the emerging economies are still putting their infrastructures in place and are still investing heavily in the computer sector," he said.