Intel cuts profit forecast dut to Thai floods


Intel cuts profit forecast after Thai floods disrupt chip plant production

Kathleen Hall

Chipmaker Intel has cut sales and profits forecasts due to hard disk drive supply shortages, following the floods in Thailand.

Intel cut sales estimate to $13.7bn (£8.38bn) for the fourth quarter, down from $14.7 billion. It also warned profit margins will be slightly lower, at about 64.5% rather than 65%. Intel is the world’s largest manufacturer of microprocessors.

The announcement follows floods in Thailand, where several computer manufacturing plants were disrupted.

“The worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012,” said Intel.

Research firm iSuppli said it expects global PC shipments to total 84.2 million units in the first three months of 2012, down from a previous estimate of 88 million units.

Computer maker Dell also warned that flooding in Thailand is causing a worldwide shortage of PC hard drives that will last into the first quarter of 2012 and could affect the company’s revenues.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy