SANTA CLARA, Calif. — Even after sharply reducing its outlook for the fourth quarter, Intel said Wednesday it would miss its revenue projection by about $500 million, a sign that PC makers and buyers are being more tightfisted than it seemed only two months ago. Intel shares closed down 6 percent, 93 cents, at $14.44.
Intel says revenue was $8.2 billion for the last three months of 2008, a 23 percent decline from the year-ago period. Analysts surveyed by Thomson Reuters were expecting $8.7 billion, which was at the low end of Intel’s range in November of $8.7 billion to $9.3 billion.
Intel blamed the latest revision on weaker-than-expected demand, piling up in a chain reaction. Businesses are putting off upgrading to new computers until the economy and their finances improve. And consumers, singed by layoffs and falling home prices and stock portfolios, have scaled back their spending as well. In turn, that has prompted PC makers to try to save money by burning through their existing inventories of chips instead of buying lots of new ones. The Associated Press
