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Intel lowers Q4 financial outlook over HDD shortage
Reported by Dean Wilson on Monday, December 12 2011 11:49 pm
Intel has announced that its financial results for the fourth quarter of 2011 will be lower than expected due to the hard disk drive (HDD) shortage.
Intel has announced that its financial results for the fourth quarter of 2011 will be lower than expected due to the hard disk drive (HDD) shortage.
The chip giant revised its fourth quarter revenue expectations down from $14.7 billion to $13.7 billion, showing the monumental impact the flooding in Thailand has had on its business.
Intel said that PC sales are expected to be higher in the fourth quarter compared to the third, but added that the entire global PC supply chain is reducing inventories and microprocessor purchases due to the HDD shortage, which Intel predicts will continue into the first quarter of next year.
Last week IHS iSuppli forecast that there would be by 3.8 million fewer PCs in the first quarter of 2012 due to the HDD supply issue, despite some recovery in the industry by companies like Western Digital.
With Intel feeling the impact of the Thailand floods, we can likely expect other chip makers and companies dependent on hard drive supply to also lower their revenue expectations.
Intel will announce its fourth quarter results on 19 January, 2012.
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