View this article at: http://www.electronista.com/articles/08/11/12/intel.misses.q4.targets/

Wednesday, Nov 12, 2008 6:20pm

Intel to miss Q4 target by ...

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.