Steep drops in the price of NAND flash memory have hit Intel's profits, but CEO Paul Otellini vows it's not going to put the company in the red, the AP reports. Prices of the chips have fallen more than 50% recently, much more than the chipmaking giant had predicted. Otellini says the company will move into new markets to offset the effect of the cheap chips.
Oversupply and competition has driven down the price of NAND flash chips, and Intel may slow down its investment in the category. "This business will not be a drag on Intel Corporation," Otellini promised. "We're going to fix it, or we're going to make sure it's profitable, one way or another." He said the company's core business was still doing fine.