Intel's quarterly revenue and profit, for example, dropped amid a bruising battle with Advanced Micro Devices, but the.
The still-dominant chipmaker's net income fell for the second quarter--but it was still enough to beat Wall Street's profitability predictions.
The numbers reflect the company's loss in market share to longtime rival AMD, whose Opteron processor family has found its way into machines from the top four server makers. Intel, whoseand Montecito , also has a glut of inventory.
The earnings also explain the need for a recentand set in motion a first reported by CNET News.com on Wednesday.
AMD, for its part, came in withbelow the company's targets as it bore the brunt of the price war. Revenue from desktop processors was lower than expected due to deep price cuts by Intel, AMD executives said on a conference call. Earnings also came in lower than expected.
In a related move that could tighten the squeeze on Intel, AMD and IBM are expected to form an alliance that will lead to.
On the software front, Microsoft reported earnings were just ahead of analysts' expectations as the company announced a plan to . The software giant said it has already completed the $30 billion stock buyback announced two years ago.
Meanwhile, Apple Computer's revenue fell a little short of expectations, butand Mac sales increased at a healthy clip.
Analysts had been worried that Apple's iPod growth had trailed off in the middle of a long stretch without a significant redesign or new feature. Apple sold 8.1 million iPods during the quarter, and a Piper Jaffray research report earlier Wednesday said anything over 8 million would be a "slight positive."
Mac sales, during what was considered a poor quarter for the PC market,compared with last year. Apple said 75 percent of all Macs sold during the period used Intel's chips.
The Mac news got CNET News.com readers talking, as one suggested that Apple branch out and release an operating system compatible with any x86-compatible PC. "They could ask more money for the PC version, since they wouldn't be selling their PC, but think of the profits they could potentially make, we are talking about billions of more in sales," the reader said. "There are millions of people fed up with not the PC, but Windows, that's what they need to do."
Another reader, of course, responded, "How do you expect Apple to continue the same level of quality when they get split a million ways trying to support everyone's computers? The fact that Microsoft does this is one of the reasons for Windows having some of the problems it does. Linux also struggles with support for many hardware devices."
Turning to the Web, Google this week unveiled a Web search. The company also posted earnings , as revenue from advertising continued to rise on market share increases.
And Yahoo, which struck a deal this week , posted second-quarter net income thatbut was lower than a year earlier on higher stock compensation expenses. Revenue was just shy of analyst estimates.
Tech wheels of justice
In the nation's capital, Attorney General Alberto Gonzales on Tuesday resumed his , while admitting that the president prevented a review of the program earlier this year by Department of Justice lawyers.
Gonzales reiterated the president's recent pledge to submit the National Security Agency program to review by a secret court as long as Congress passes a new. That and debate.
That issue also got readers talking, mostly about politics, although one tried to bring the focus back to technology. "But what surprises me more is how the technology-inclined audience throws its technical understanding out the window when these articles are printed. Despite all the security warnings, articles on spyware, key loggers, rootkits, etc., they think their information on the Net is private," the reader wrote. "I hate to burst your bubble, but the Internet is a public network."
Also in Washington, a federalin a lawsuit against Google brought by Agence France-Presse that alleges Google's popular news search feature violates copyright laws.