Intel cuts its sales forecasts

Intel logo

The world's largest maker of computer chips, Intel, has cut its three-month sales forecast and withdrawn its full-year predictions.

The company said that reduced demand for computers from individuals and businesses was hitting its revenue.

It now expects third quarter revenue of between $12.9bn and $13.5bn (£8.1bn to £8.4bn) down from its previous estimate of $13.8bn to $14.8bn.

That sales forecast had already been cut in July.

Intel does not publish profit outlooks, as a rule, but has warned that it may also make less money on each chip sold.

The company said its profit margin could be below the 63% originally forecast.

Williams Financial Group analyst Cody Acree said the downgrade had been inevitable: "Everybody up and down the food chain has been saying this. Intel was one of the last hold-outs."

Global sales of personal computers have been sluggish this year as firms and households put off new purchases in the uncertain economic climate.

Increasingly, PCs are being supplanted by tablet computers which use NAND or flash memory chips rather than hard discs found in desktop and laptop computers.

Intel has succeeded in taking a share of the NAND chip market, but faces competition from market leaders in the sector including Samsung and Toshiba.

In July, Toshiba announced it would cut production due to a glut of NAND chips which has also depressed prices and profits on the global market.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

  • Man holding lipWitch hunt

    The country where a writer accused of blasphemy must run


  • Espresso cupNews quiz

    Which city serves the strongest cup of coffee?


  • Lauren Arrington holding up a fishSomething's fishy

    Scientist claims 'child prodigy' getting credit for his discovery


  • A woman's stomach with the words "I love IDF"'War porn'?

    Support - and disdain - for women posting sexy selfies for the IDF


Elsewhere on the BBC

  • CastleRoyal real estate

    No longer reserved for kings and queens, some find living in a castle simply divine

Programmes

  • Leader of Hamas Khaled MeshaalHARDtalk Watch

    BBC exclusive: Hamas leader on the eagerness to end bloodshed in Gaza

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.