Chip giant Intel (INTC) cut its Q4 revenue guidance by more than 10% this afternoon, citing “significantly weaker than expected demand in all geographies and market segments.”
Specifically, Intel thinks it will post $8.7 billion to $9.3 billion in Q4 sales, down from its previous expectation of $10.1 billion to $10.9 billion, and far below the Street’s $10.36 billion consensus. Even Intel’s high-end guidance is now well below last year’s Q4 sales, which topped $10.7 billion.
Intel shares are down 8% in after-hours trading. Apple (AAPL), Dell (DELL), and HP (HPQ) shares are all down between 2.5% and 3.5%. Microsoft (MSFT) shares are down 1.7%.
Intel’s warning comes a week after network gear giant Cisco (CSCO) predicted its Q2 sales to shrink 5% to 10% year-over-year.
More from Intel’s release:
The company’s expectation for fourth-quarter gross margin is now 55 per cent plus or minus a couple of points, lower than the previous expectation of 59 per cent plus or minus a couple of points, primarily due to lower revenue and other charges associated with the weaker-than-expected demand environment.
Besides weaker demand, “…the PC supply chain is aggressively reducing component inventories,” the company said in a statement.
See Also: Cisco Quarter Solid, Guidance Terrible
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