Analytics firms are still predicting a rough quarter for computer and chipmakers as sales are expected to decline even further. Despite the predictions of analysts, Intel still believes that the bottom of the market has been reached.

Intel CEO Paul Otellini talked to investors and analysts at yesterday about the state of Intel. Last month, Otellini boasted that he believed the bottom of the PC market had been reached, a fact disputed by many analysts. He now says that Intel's business for the first few months of 2009 has been better than expected.

Otellini said, "We are halfway through Q2. In terms of our order pattern and our billing pattern, it's a little better than expected." June is a key month for the quarter and according to Otellini business is described as "so far, so good."

IDC predicted that shipment volumes in the industry will be down 9 to 10% for the year, but Otellini says that he doesn't think things will be that bad for the industry.

He said, "I'm getting increasingly comfortable that the dip here is not as aggressive as they are showing."

Otellini said that about 45% of the 800 million computers globally are three or more years old. That fact suggests that there is a pent-up demand to refresh those machines according to Otellini and that demand will coincide with the release of Windows 7.

Intel sees the biggest growth opportunities in areas like netbooks, handheld devices, and consumer electronics each segment worth about $10 billion. Intel sees the most potential in mobile categories reports eWeek. He said, "Mobility is where we think most of the growth is."

Otellini's statements came before the EU levied a massive $1.45 billion fine against Intel for anticompetitive practices. Today, Intel and Otellini might feel differently about the outlook. The fine has to be paid immediately, though it will be held in an account until the appeals process is complete; something likely to last years.