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.