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Intel slashes third quarter sales forecast despite Windows 8 launch

Windows 8 fails even before it hits the shelves
Fri Sep 07 2012, 22:37
An Intel logo on a piece of equipment

CHIPMAKER Intel has revised down its earnings forecast for the third quarter to $13.2bn.

On the eve of its Intel Developer Forum (IDF), Intel announced that it expects to make less money than it previously thought during its third quarter. The firm now forecasts revenues of $13.2bn, give or take $300m, down from previous estimates of between $13.8bn to $14.2bn.

With Microsoft releasing Windows 8 to system builders this Autumn it was expected that the third quarter would be a very profitable one for Intel, as demand for its chips would increase as computer OEMs would build desktop and laptop PCs prior to the release of Windows 8. However Intel's comments suggest the opposite, with the firm claiming that supply chain inventory has been reduced, and lower than expected demand for PCs from enterprise and emerging markets has led it to revise down its earnings forecast.

Chipzilla also said it would increase its re-use of existing equipment as it moves to the 14nm process node. The firm's transition to 14nm is expected to yield its first product near 2015 as the successor to Haswell.

While Intel posted stellar results for its 2011 fiscal year, it looks like 2012 will not prove to be a record breaking year. The firm is facing increasing competition in its core PC chip market, as Microsoft will release Windows RT for ARM processors later this year. µ


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