Intel Lowers Quarter Outlook on Weaker Consumer PC Sales

By Jessica Davis  |  Print this article Print

Consumer PC demand has proven weaker than expected in the third quarter, according to Intel, which lowered its revenue expectation.

Intel Corp. lowered its outlook for the third quarter, saying it now expects revenue to come in at $11 billion, plus or minus $200 million. That compares to a previous expectation of $11.2 billion to $12 billion.

Intel said that its lower expected revenue comes from weaker than expected demand for PCs in mature markets. The company added that inventories across the supply chain seem to be in line with its new expected revenue numbers.

But the good news is that the lower volume of unit sales is being partially offset by slightly higher average selling prices coming from solid enterprise demand, according to Intel. Intel said its third-quarter gross margin expectation is now 66 percent, plus or minus a point, which is lower than the previous expectation of 67 percent, plus or minus a couple of points.  


Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com