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Cheap Flash makes Intel lower Q1 forecast

Consumers strike up chorus of tiny violins

In brief Intel is lowering expectations for the first quarter of 2008 because flash memory prices are too cheap for comfort.

Chipzilla said today it expects a gross profit margin of about 54 per cent, down from 56 per cent forecast in January. The company blames the 2 per cent difference on a market saturation of NAND flash memory driving down prices.

What puts a smile on customers' faces doesn't necessarily follow for a company that entered a joint venture with Micron Technology to produce memory chips. Common knowledge dictates that it would require approximately 15 more facial muscles to replicate Intel's reaction to a memory glut. All other expectations for the quarter remain as they were back in January, the company said.

Back in January, Intel predicted it would post first quarter revenue between $9.4bn and $10bn. ®

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