Bookmark and Share


Intel Corp. today announced that the third-quarter revenue is expected to be below the company's previous outlook as a result of weaker than expected demand in a challenging macroeconomic environment. Intel's customers among PC makers, distributors and others are reducing inventory they carry due to weak outlook for demand in the coming months. Some observers believe that the demand may get higher once Windows 8 is released.

The company now expects third-quarter revenue to be $13.2 billion, plus or minus $300 million, compared to the previous expectation of $13.8 billion to $14.8 billion. Relative to the prior forecast, the company is seeing customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory; softness in the enterprise PC market segment; and slowing emerging market demand. The data center business is meeting expectations.

Many analysts this week warned about Intel's inability to meet its own earnings forecasts this quarter. Apart from macroeconomic reasons behind Intel's upcoming financial results, many analysts pointed out that the demand towards PCs in the Q3 was supposed to be lower than traditionally due to Windows 8 launch in late October. In addition, Intel's main initiative these days - ultrabooks - has not really taken off, which means that sales of Intel's high-end microprocessors are lower than it originally anticipated.

The company's expectation for third-quarter gross margin is now 62%, plus or minus one percentage point; lower than the previous expectation of 63%, plus or minus a couple of percentage points. Expectations for R&D and MG&A spending and depreciation in the third quarter remain unchanged.

Full-year capital spending is expected to be below the low-end of the company's previous outlook of $12.1 billion to 12.9 billion, as the company accelerates the re-use of existing equipment to the 14nm node.

Tags: Intel, Ultrabook, Atom, Core, Ivy Bridge, Sandy Bridge, Xeon, 22nm, Business


Comments currently: 3
Discussion started: 09/09/12 09:35:04 AM
Latest comment: 09/12/12 12:29:09 AM


I will be very surprised if Windows 8 turns out to drive demand for Windows PCs (at least longer term than a few months, when the ME/Vista pattern PR nightmare will inevitably set in).
1 0 [Posted by: lol123  | Date: 09/09/12 09:35:04 AM]

"Some observers believe that the demand may get higher once Windows 8 is released".

These must be the same observers whom have their head up in the clouds :-)
0 0 [Posted by: USAFANG67  | Date: 09/10/12 06:06:33 AM]

Of course this has nothing to do with ppl buying 'droid/ARM tablets instead of that shiny (but EXPENSIVE) new ultrabook...............facepalm.jpg
0 0 [Posted by: alpha0ne  | Date: 09/12/12 12:29:09 AM]


Add your Comment

Related news

Latest News

Wednesday, November 5, 2014

10:48 pm | LG’s Unique Ultra-Wide Curved 34” Display Finally Hits the Market. LG 34UC97 Available in the U.S. and the U.K.

Wednesday, October 8, 2014

12:52 pm | Lisa Su Appointed as New CEO of Advanced Micro Devices. Rory Read Steps Down, Lisa Su Becomes New CEO of AMD

Thursday, August 28, 2014

4:22 am | AMD Has No Plans to Reconsider Recommended Prices of Radeon R9 Graphics Cards. AMD Will Not Lower Recommended Prices of Radeon R9 Graphics Solutions

Wednesday, August 27, 2014

1:09 pm | Samsung Begins to Produce 2.13GHz 64GB DDR4 Memory Modules. Samsung Uses TSV DRAMs for 64GB DDR4 RDIMMs

Tuesday, August 26, 2014

10:41 am | AMD Quietly Reveals Third Iteration of GCN Architecture with Tonga GPU. AMD Unleashes Radeon R9 285 Graphics Cards, Tonga GPU, GCN 1.2 Architecture