Intel has released a sales and profit margin warning for the
fourth quarter, ahead of its full year results.
Intel, a bellweather for the technology industry, says
fourth-quarter sales will be below the company's previous
outlook.
The company now expects fourth-quarter revenue to be around
£5.8bn, "plus or minus about £190m", lower than its previous
expectation of between £6.5bn and £7bn.
Intel said sales are being affected by "significantly weaker
than expected demand in all geographies and market segments.
"In addition, the PC supply chain is aggressively reducing
component inventories". In other words, PC makers are using less
Intel chips and other components.
The company also now expects its fourth-quarter gross margin to
fall to 55%, "plus or minus a couple of points", from the previous
forecast of 59% plus or minus a couple of points.
The firm's full year results will be announced on 15 January.
Intel has been cutting thousands of jobs from its total headcount
over the last two years, so this bad financial news may mean more
to go.