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.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
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.