Intel to miss Q4 target by at least $1 billion
updated 06:20 pm EST, Wed November 12, 2008
Intel to miss Q4 targets
Chip maker Intel does not expect to meet its fourth-quarter revenue targets, with anticipated revenue of $9 billion, falling short of the previous expectation of $10.1 billion to $10.9 billion. The company blamed the lackluster performance on "significantly weaker than expected demand in all geographies and market segments." The trend of component inventory reduction by PC manufacturers was also claimed to affect the earnings. The gross margin outlook as also been dropped, to 55 percent from 59 percent.
Intel's forecast adjustments could have broader implications for the consumer electronics industry. A recent ChangeWave analysis found that 40 percent of surveyed Americans expected to spend less money this holiday season, while only 14 percent expect to spend more. Intel's difficulties could be viewed as unique, but the company gained market share against its competitors in the third quarter.
