The chipmaker now expects revenue of $10.8-11.2 billion, down slightly from the previously anticipated $11.2 to 12 billion range. Intel also foresees a potentially tighter gross margin: 65-67%, down from the previous ballpark of 65-69%.
What's causing the giant to falter? "Weaker than expected demand for consumer PCs in mature markets," the giant says. On the upside, Intel adds that "the impact of lower volume is being partially offset by slightly higher average selling prices stemming from solid enterprise demand."
These updated results are, of course, hardly anything to be ashamed about. In the same quarter a year ago, Intel posted revenue of $9.4 billion with a gross margin of 58%. The new predictions are substantially higher, and they even leave room for Intel to match its record-breaking second quarter. Intel stockholders can probably kick back and smoke a cigar or two.