Intel has cut its outlook for revenues in the first quarter, citing a weak business market for desktop PCs and supply chain shortages in the PC industry. The world's largest chipmaker now expects revenue of USD 12.8 billion for Q1, plus or minus USD 300 million, compared to the previous forecast of USD 13.7 billion, plus or minus USD 500 million.
Intel said the weaker market may be due to slower Windows XP replacements in the small business market than previously expected, as well as the "increasingly challenging macroeconomic and currency conditions, particularly in Europe". The company noted that its data centre business is meeting expectations.
Intel maintained its outlook for a gross margin of around 60 percent, as the lower PC volumes were offset by higher average selling prices. It will update its longer-term guidance when it reports quarterly results 14 April.
