Intel lowers expectation on weak home PC sales

InvisibleSHIELD.  Scratch Proof your iPhone 4!“Intel confirmed fears on Friday and dropped its expectations for its summer results based on a slump in PC sales,” Electronista reports. “It dropped its revenue outlook from a range of $11.2 billion to $12 billion down to $11 billion with a range of $200 million above or below. The company pinned the drop on “weaker than expected demand” among home PCs.”

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Electronista reports, “The company wouldn’t name clients, but it corroborated rumors of Acer, HP and Lenovo shedding orders by noting that inventory of PCs was ‘in-line’ with its newly lowered guidance.”

“Apple has continued with above-average growth and so far hasn’t shown signs of slowing down in the summer,” Electronista reports. “Its focus on high-end computers has kept it relatively immune from economic troubles, as its customers are less price-sensitive than those shopping the sometimes volatile low-end PC market.”

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12 Comments

  1. I have a question for Otellini – other than Macs, if all the Intel chips and their PCs are still manufactured in California with all the economic hurdles here that he mentioned removed, who will buy them?

  2. Sorry Intel. Most people don’t need a PC or even a Mac these days. They only need an iPad to do 95% of what they need to do. You should have worked a little harder on perfecting that Atom processor of yours.

  3. Otellini has his chance to bring down the entire PC market and be the dominant processor company with Apple, but he is to greedy to share that he wanted more than apple was offering at that time.

    Apple was one of the creators of the PowerPC chip with IBM and Motorola. Apple help Intel with the “Core” tech in the new core chips, now Apple has made a great contribution to ARM via the A4.

    Companies never learn. Having apple as a friend will bring you a lot of money (may be not customers like RIM, but big profits sure).
    Having him as a enemy, could be your pit fall, isn’t Nokia? Palm? RIM?

  4. Maybe there is a non Intel based device that is kicking the __it out of those sad netbooks. I think they call it an iPad. And I hear the more that 75% of the kids going to college are taking Macs and those free iPod touch devices that will not be using your cpu either.

    Intel, should have figured out those low power CPU chips for Apple. Not a problem. Apple bought a company that could do it and it is an inside job now.

  5. My step mother (81 years old) has been a knowledgeable and an HP customer. In discussions about computers she turned her nose up when Apple was mentioned. Two weeks ago she bought an iMac…and loves it.

    I’m not so sure overall computer sales are down, so much as I think computer buying patterns (Mac switchers and iPad) have changed.

  6. > Apple has continued with above-average growth… Its focus on high-end computers has kept it relatively immune from economic troubles, as its customers are less price-sensitive than those shopping the sometimes volatile low-end PC market.

    That’s a really dumb statement. Price has nothing to do with the downturn in sales. If low-end computers are not selling well enough due to current prices, the “volatile” prices will come down and those “price-sensitive” customers should buy. In a down economy, sales of luxury (“high-end”) items are hit hardest; people tend to shop more at Target instead of “boutique” stores. So why should Apple be “immune” simply because it focuses on “high-end” computers?

    The REAL problem for the rest of the industry is Windows. It’s basically the same OS on all computers, except the ones sold by Apple. If selling “high-end” computers was so profitable and “immune from economic troubles,” everyone would be selling them. But they can’t, because a $500 Windows computer has same interface as a $2500 Windows computer. Only Apple can distinguish its computers with an interface that is distinctly desirable and considered “high-end” (even by Microsoft’s own marketing schemes).

    To make matters worse, another large chuck of sales (in the “netbook” segment) has been siphoned off by iPad.

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