Chipmaker Intel announced profits of $2.7bn in the first quarter of 2012, an 18 per cent decline from the same period in 2011, The Inquirer reported.

Intel's stellar 2011 set the firm apart from its competitors, many of which were floundering due to decreased demand for DRAM. However Intel's first quarter 2012 financials show that the company isn't isolated from the wider world, as it reported revenues of $12.9bn and profits of $2.7bn.

Intel's financial figures sound impressive until they are placed against its first quarter 2011 numbers. This time last year Intel announced bumper revenues and profits, thanks in no small part to its Sandy Bridge processors. Compared with last year's figures the firm's revenues are stagnant while profits fell by a disturbing 18 per cent.

CEO Paul Otellini said he expects Ivy Bridge processors that will appear in the coming weeks will help Intel's bottom line, while the first Medfield Atom based smartphone is also expected to hit the shelves in the next three months.

"The first quarter was a solid start to what's expected to be another growth year for Intel. In the second quarter we'll see the first Intel-based smartphones in the market, ship products based on 22nm tri-gate technology in high volume, and accelerate the ramp of our best server product ever, providing a tremendous foundation for growth in 2012 and beyond," said Otellini.

Although Intel's figures are disappointing, its results likely would have been different if it hadn't repeatedly delayed Ivy Bridge. Chipzilla is expecting a big 2012, however, with Microsoft's Windows 8 coming out this Autumn and the company starting to push into smartphones and tablets.