Intel cuts revenue forecast as desktop demand weakens
Fewer companies than Intel had expected replaced desktop PCs running on outdated Microsoft operating systems, leading to weak demand for its chips. Intel also cited “challenging” macroeconomic and currency conditions, particularly in Europe. Intel said on Thursday that it expected first-quarter revenue of $12.8 billion, plus or minus $300 million – about 7 percent lower than its earlier forecast of $13.7 billion, plus or minus $500 million. Though dominant in the market for chips used in PCs, Intel has been slower than rivals such as Qualcomm Inc to adjust in recent years to the growing popularity of laptops and tablets.