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Intel cuts revenue forecasts because of shortages | Intel cuts revenue forecasts because of shortages |
(about 4 hours later) | |
Computer chip maker Intel has said it will miss revenue forecasts because of a shortage of hard disk drives. | Computer chip maker Intel has said it will miss revenue forecasts because of a shortage of hard disk drives. |
Intel, the world's largest maker of microprocessors, now expects to make revenues in the fourth quarter of $13.4bn to $14bn (£8.6bn to £9bn). | Intel, the world's largest maker of microprocessors, now expects to make revenues in the fourth quarter of $13.4bn to $14bn (£8.6bn to £9bn). |
Intel shares fell more than 4% on news of the reduction from the $14.2bn to $15.2bn previously forecast. | Intel shares fell more than 4% on news of the reduction from the $14.2bn to $15.2bn previously forecast. |
Floods in Thailand, where several computer manufacturers have plants, have seriously disrupted production. | Floods in Thailand, where several computer manufacturers have plants, have seriously disrupted production. |
Intel's statement said: "The worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. | Intel's statement said: "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." | "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." |
Research firm iSuppli has said it expects global PC shipments to total 84.2 million in the first three months of 2012, down from a previous estimate of 88 million. | |
Tom Kilroy, senior vice president at Intel, told a news conference: "In the last two weeks, as the supply became more apparent, we saw a substantial change in our order rate. | |
"Most of our customers are concerned the shortage will continue - especially through the early part of the first quarter," he said. | |
Analysts were not surprised that Intel cut its forecast, as recent news from the industry generally had prompted a lowering of expectations. | |
Mark Lipacis, analyst at Jefferies, wrote that Intel's revenue cut was only a matter of time. | |
Last month, AMD said that it would cut 1,400 jobs because of a slowdown in computer sales and manufacturing delays. Last week Texas Instruments lowered its fourth-quarter guidance. |
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