Intel Lowers First-Quarter Revenue Outlook, Blames Weaker Demand For Desktop PCs

Intel logo

Intel today announced that first-quarter revenue is expected to be below the company’s previous outlook. They lowered their outlook by almost a billion dollars. Intel now expects first-quarter revenue to be $12.8 billion, plus or minus $300 million, compared to the previous expectation of $13.7 billion, plus or minus $500 million. Intel blamed that poor desktop PC sales and lower than expected Windows XP refresh in SME as the reasons for lowering the outlook.

The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain. The company believes the changes to demand and inventory patterns are caused by lower than expected Windows XP* refresh in small and medium business and increasingly challenging macroeconomic and currency conditions, particularly in Europe.

This means that Microsoft’s Windows division revenue might also be lower than expected. Even during last quarter, Windows revenue saw a significant drop.

Windows OEM revenue declined $455 million or 13%, due to a 13% decrease in both OEM Pro revenue and OEM non-Pro revenue. Windows OEM Pro revenue decreased, primarily due to benefits realized from the expiration of support for Windows XP in the prior year and an increased mix of lower-priced licenses for devices sold to academic customers. Windows OEM non-Pro revenue declined, mainly due to an increased mix of opening price point devices sold. Office Consumer revenue declined $208 million or 25%, reflecting the shift of customers to Office 365 Consumer, and declines in the Japan PC market, where Office has high attach to PCs.

Read more about it here.

Some links in the article may not be viewable as you are using an AdBlocker. Please add us to your whitelist to enable the website to function properly.