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Intel cuts sales forecasts because of Thailand floods

December 15, 2011 By: Dr Search Principal Consultant at the Search Clinic Category: Computers, Customer Service, Ecommerce, internet, Technology Companies, Uncategorized

Chip maker Intel has said it will miss it’s sales forecasts because of a shortage of hard disk drives.Intel cuts sales forecasts because of Thailand floodsIntel, the world’s largest maker of microprocessors, now expects to make revenues in the fourth quarter of £8.6 billion to £9 billion ($13.4 billion to $14 billion).

Intel shares fell more than 4% on news of the sales reductions.

Floods in Thailand, where several computer manufacturers have plants, have seriously disrupted production.

Intel’s statement said: “The worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages.

“The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012.”

Tom Kilroy, senior vice president at Intel, told a news conference: “In the last two weeks, as the supply became more apparent, we saw a substantial change in our order rate.

“Most of our customers are concerned the shortage will continue – especially through the early part of the first quarter,” he said.

Analysts were not surprised that Intel cut its forecast, as recent news from the industry generally had prompted a lowering of expectations.

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