Computer chip giant Intel Corporation on Tuesday reported quarterly earnings that beat Wall Street expectations and said its processors would soon debut in smartphones.

The California-based company said that it had a net income of $2.7 billion on revenue of $12.9 billion in the first three months of the year.

"The first quarter was a solid start to what's expected to be another growth year for Intel," Intel chief Paul Otellini said in a release.

"In the second quarter we'll see the first Intel-based smartphones in the market...and accelerate the ramp of our best server product ever, providing a tremendous foundation of growth in 2012 and beyond."

Intel stock price sank nearly three percent to $27.64 a share in after-hours trading that followed release of the earning figures.