Intel Lowers Q3 Revenue Forecast
Intel lowered its revenue forecast for the fiscal third quarter of 2010 Friday, citing lower-than-expected demand for consumer PCs in mature markets.
The company is now projecting revenue for the quarter to be US$11 billion, plus or minus $200 million, the company said in a statement. The company previously projected third-quarter revenue between $11.2 billion and $12 billion.
Intel's chips go into more than 80 percent of computers worldwide. IDC last month said PC shipments are expected to grow at slower rates in the second half as consumer spending slows down. PC shipments grew at fast rates in the first two quarters compared to the same quarters last year as economies rebounded from the recession.
"We expect consumer activity to remain healthy, but gradually slow through the end of the year, while commercial market growth will be more stable, reflecting a planned replacement cycle over the next several years," IDC said in a statement on July 14.
PC makers have projected a slowdown in consumer PC demand. During an earnings call on Aug. 19, Dell Chief Financial Officer Brian Gladden said the company saw a weakening in demand for consumer PCs at the end of the company's second fiscal quarter, which ended on July 30. But he also said that the consumer business should gain steam as purchases pick up during the holiday season toward the end of the year. He also said that demand for client PCs in enterprises will remain stable as companies refresh IT infrastructures,
Intel will report third-quarter earnings report on Oct. 12.