Intel warns with big reduction in fourth-quarter sales forecast

“After the end of the third quarter, one tech titan after another bemoaned a ‘lack of visibility’ into the year-end period. As the U.S. financial crisis worsened in September, it was apparent the rest of the year would be rough, but most companies could scarcely tell how bad things would get,” Arik Hesseldahl reports for BusinessWeek.

“The industry is getting all too clear a picture now. The most recent indication came Nov. 12, when Intel (INTC) slashed its fourth-quarter sales forecast, citing ‘significantly weaker than expected demand in all geographies and market segments.’ Intel said it now expects sales of $8.7 billion to $9.3 billion, down from a prior forecast of $10.1 billion to $10.9 billion,” Hesseldahl reports.

“As the world’s largest maker of computer chips, Intel is considered a bellwether for the wider industry. Its warning represents an uncharacteristically dour outlook for the crucial fourth quarter, when tech companies depend on consumers making yearend holiday gift purchases and companies draining annual IT budgets. ‘For all intents and purposes, the PC market is just dead,’ says Edwin Mok, an analyst at Needham & Co. in San Francisco,” Hesseldahl reports.

Full article here.

[Thanks to MacDailyNews Reader “Judge Bork” for the heads up.]

18 Comments

  1. MikeR,

    Obviously, Intel is making a profit, it’s just less than expected (i.e. forecasted, predicted, anticipated, predicted). I suspect that Intel’s profits come mainly from Windows-based PCs, not Macs. If the Nehalem-based processors are as advanced as rumored and most potential buyers holding out, then Intel should be well set for the next few years.

  2. If 33% of the laptops and 27% of the desk tops purchased this quarter are Apple Macs, we are just looking at a faster market share takeover for Apple!

    Dell and HP are still fighting over the smaller pile of cheep scraps that Apple does not want yet.

  3. I am an inventor and manufacturer.

    We are looking at building manufacturing facilities in four locations in the next year – all Mac driven. Each employs at final build 1500 employees. All employees are given the opportunity to have Macs at home (iMac or MacBook) – supplied as a benefit to the employee and his/her family.

    We are also building two (possibly three) terascale systems – all Mac powered. 2048 nodes per sys. (for continued research and to farm out excess computational time to Universities and corporations).

    All Mac all Intel. We are doing our part.

    ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    And I personally am holding out for the 17″ MBP and the new MacPro.

    Heeh.

  4. Unfortunately, this may be the first quarter in a long time in which Apple’s financial projections are not “conservative” but “right on the money.” That will still look awfully good compared to Dell and even HP.

  5. Watch out, bitches, this baby got LEEGGGS.

    And I got more junk in the truck than the last five first ladies combined (Babs excluded.)

    Now, we ain’t stupid. Me and that oreo Barry knows we only gots 4 years (at most) here, so we gonna get this party started and take what we can get, plus some!

    So, shut your mouths, bitches – you ain’t seen nothing, yet!

    MDN MW: “country” As in, this “country” is fucked.

  6. Part of the problem with this damn frigging economy is that investors expect stellar performance all the time. It is no longer okay for a company to make a profit – they now have to grow at a fast rate or be deemed a failure.

    Like Apple, Intel have been innovating and have a good product pipeline. Cut-throat PC prices are in the end going to hurt the industry because it is not sustainable. Dell are in trouble because they are fixated about market share rather than making good products. That type of growth is suicide because eventually someone else undercuts you.

    The stock market should take a longer view and look at companies that are investing in the future. The dot.com and real estate boom and bust really highlight the stupidity of going for the fast buck.

  7. @ Curious Cat in Oz

    Some really cool stuff (off grid power and water systems and electronic power regulation systems) – And we are investigating (IRAD) the possibility of developing a direct conversion system that will utilise FTEs to power the grid directly using MHD and EHD in orbit.

    If I tell you any more, I have to have my favourite gorillas have a deep chat to you!
    ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    We are building plants in Oz, Singapore, India, and UAE. Kind fun. T/S systems will be in Oz and Bern. Maybe one in India but that is still in negotiations.

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