Intel shaved almost $1 billion off its first-quarter earnings outlook Thursday on what it said was weaker than expected demand for business desktop PCs.
The company said it is also seeing lower than expected inventory levels across the PC supply chain.
The revised forecast was for $12.8 billion in sales, plus or minus $300 million, down from a previous estimate of $13.7 billion, plus or minus $500 million.
The company is the leading supplier of processor chips for PCs and data center servers. Intel said its forecast for the data center business remains unchanged.
Intel said it is seeing lower than expected computer upgrades by middle and small businesses and economic and currency challenges in Europe.
The Santa Clara chip company had a strong 2014 as companies upgraded their computers following an announcement by Microsoft that it would no longer support its aging Windows XP operating system.
Intel s PC business is also challenged by the rise of tablets and smartphones, which have cut into PC sales globally. It is pushing hard to become a player in the mobile marketplace.
Photo: Intel
