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Intel Lowers its Q4 Revenue Outlook Due to Shortage of HDDs
Intel Lowers its Q4 Revenue Outlook Due to Shortage of HDDs
Intel has lowered its fourth-quarter revenue outlook due to the ongoing shortage of HDDs caused by floods in Thailand. The chipmaker said that it expects its revenue in the fourth-quarter to be between US$13.4 and US$14 billion. Such a downward revision by the company translates to a reduction of revenue by approximately 6 to 9%. The previous expected Q4 figures were in the range of US$14.2 to US$15.2 billion.
Compared to its Q4 revenues last year in 2010, the revised revenue of between US$13.4 and US$14 billion is still roughly 22% higher quarter-on-quarter. From the table above, Intel's recorded revenue in Q4 of 2010 was US$11.5 billion. The company stated that sales of PCs are expected to be up sequentially during the fourth-quarter; however, the worldwide PC supply chain is reducing inventories and CPU purchases as a result of the supply shortages of HDDs caused by the recent floodings in Thailand. Intel did not name the HDD manufacturers whose productions have been affected by the Thailand floods and the company is expecting the shortage to last till the beginning of 2012.
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