Intel Q2 revenue to sink further than expected?
EE Times cites a report from Handelsbanken Capital Markets Analyst
Bruce Diesen, who claims Intel
will announce another profit warning
for the second quarter. Back in
March, the company announced
first quarter revenue would fall short of expectations. The same may now happen for Q2. Intel's revenue for the first quarter of this year turned out to be $8.9 billion, down from an expected $9.1-9.7 billion and 5% below last year's first quarter revenue of $9.4 billion. The company came to a consensus forecast of $8.4
billion for the second quarter, but Diesen says Intel is now expected to
make only $7.9 billion. This figure would be down 14% from last
year's $9.2 billion.
To blame for the poor expected results are Intel's shrinking sales and
recent price cuts. Diesen says chip sales for April were down 52% from
the same time frame last year, and that Intel has given up trying to
make a profit for its current-generation chips. Indeed, the company's prices
(PDF) have dropped dramatically since the first quarter. The Pentium D 950 cost $637 in January, for instance, and its list price for April was just $316—a 50% decrease in less than four months.