Intel posts sales and profit margin warning as PC makers slim supply chain

News

Intel posts sales and profit margin warning as PC makers slim supply chain

Antony Savvas

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.


Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy