Forecast focus
Intel has pared back its sales forecast due to weaker than expected demand for consumer PCs in mature markets.
It said in a statement: "Revenue is being affected by weaker than expected demand for consumer PCs in mature markets. Inventories across the supply chain appear to be in-line with the company's revised expectations."
The company said it now expects its Q3 revenue to be around $11bn, plus or minus $200m, instead of its more optimistic previous estimate of between $11.2bn and $12bn.
Intel now predicts its gross margin for the third quarter to be 66 percent, 1 percent lower than its previous expectation, but it said the impact of lower volume is being partially offset by slightly higher average selling prices.
The firm will updates its Q4 and full year forecasts with its Q3 earnings report on 12 October.
While a downgraded sales forecast is obviously not the greatest news for Intel, many commentators have pointed out components and PC figures have been lower across the board due to sluggish consumer sales.
In fact, some analysts believe Intel is being cautious and setting the bar slightly lower so it can comfortably hit its estimates.
Despite the slightly gloomy news, Intel shares have bounced back, adding 1.21 percent to $18.40 on just shy of 60m shares at 5pm.
