Feeds

Intel Q3 sales to barely meet guidance - report

Notebook PC downturn, inventory overload to blame

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

When Intel updates its Q3 financial performance tomorrow, it will revise its revenue forecast toward the bottom end of the range it announced in July.

So reckons investment house SG Cowen Securities (SGCS) in a report issued to investors yesterday: "We believe the consensus estimates for Q3 could be trimmed following a potentially disappointing mid-quarter update."

In July, Intel expected Q3 revenues to fall somewhere between $8.6bn and $9.2bn. But slow notebook sales and an inventory build-up will push revenues down to the lower figure, SGCS believes. It puts Intel's sales at $8.59bn, still up seven per cent on Q2's $8.05bn and 10.1 per cent on the $7.8bn it reported for Q3 2003.

"We expect Intel to lower the midpoint of it revenue range and possibly lower its gross margin guidance," the report says. "Our view is based on recent channel checks that suggests demand for notebook PCs remains tepid and that Intel is aggressively reducing prices to reduce excess inventories."

Intel cut prices on 22 August, but further cuts are anticipated in the Autumn to boost demand for its i915 chipset family, Grantsdale. ®

Related stories

Intel takes axe to Pentium 4 prices
Intel Itanic prices chopped
Price cuts to boost 'lukewarm' Grantsdale demand - report
Intel flashes investors with Q2 revenue jump

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.