Intel blames Europe for lower profits
It's all our fault as shares slump
Updated Intel issued a profits warning last night on Wall Street and said that its Q3 would not be as buoyant as it expected.
And it's all Europe's fault, reports local newspaper The Wall Street Journal.
Apparently, Europeans haven't been buying as many Intel products as previously, but blaming us because it can't supply enough of its components is a bit rich, coming from Chipzilla.
We haven't kept our end of the bargain, it told analysts late yesterday, causing its share price in the US to go through a rocky patch.
However, if Intel had been able to supply the pent up demand it promised, perhaps European distributors wouldn't have moved en masse to the imitator chip companies.
So it's not really our fault, is it, Intel? Its share price closed at $61.5 when the bell rang for the day.
But in later trading, the share price fell through the floor, falling 20 per cent to around $48, a precipitous slump for the chip giant.
The news sent Taiwan's high tech stocks plunging this morning, with firms like TSMC and UMC all showing sharp drops. The same picture held true in other Asian markets, including Hong Kong, Korea and Japan.
The same pattern was repeated when the European markets opened, with many chip stocks, including Philips and ST Micro showing blood on the computer screens.
But while the analysts and pundits hogged the TV screens around the world, many noticed that some stocks were very good value indeed. Buy them. And because it is the weekend, a cynical wag suggested to us in Taipei today that next week it will buy another company and Intel's stock will rise again. ®