Hard Drive Shortages Knock $1B USD Off Intel's Bottom Line
December 13, 2011 10:45 AM
comment(s) - last by
Intel will likely receive boost in opposite direction once shortage ceases and OEMs rebuild their inventories
Globally, personal computer sales and market demand continues to rise, posting their
fourth consecutive quarter of growth
. You'd think Intel Corp. (
), the world's largest maker of personal computer central processing units, would be celebrating. Instead its financial staff are reporting some unpleasant news.
yesterday that it was dropping its outlook for fourth-quarter revenue from $14.7B±$500M USD to $13.7B±$300M. GAAP and non-GAAP gross margins also dropped half a percentage point. The cuts were due to shrinking microprocessor sales.
It turns out that the
recent flooding which ravaged Vietnam
, producers of one quarter of the world's hard drives, is still sending shockwaves through the personal computing market. Hard drive shortages have hit the OEMs hard. As they can't build computers without hard drives, they've turned to pushing much of their backup inventories onto the market.
Meanwhile, the OEMs have cut their CPU orders from Intel to lower levels. Sales won't be restored until the hard drive supply picks up again and the OEMs begin to rebuild their inventories.
The good news is that Intel could enjoy a very strong H1 2012, the exepcted timeframe where the hard drive market will return to normalcy. OEMs will be trying to build up their stock, while meeting the growing demand at the same time, and that adds up to a lot of component purchases.
In that sense, this revenue drop looks be more of a deferment that a true loss of business. That said, it is still a painful one for Intel's investors. The company's stock fell 1 a quarter percent following the news, which aired lated yesterday.
This article is over a month old, voting and posting comments is disabled
RE: I'm not convinced
12/21/2011 4:16:11 PM
Your name makes your post biased and irrelevant. Try, try again.
"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher
Thailand Floods Cause Storage Shortages
October 24, 2011, 7:30 AM
Analysts: Apple Now Has More Than 10 Percent of the U.S. PC Market
July 14, 2011, 1:52 PM
Apple Launches 21.5” iMac with 1.4GHz Core i5 Processor Priced at $1,099
June 18, 2014, 8:07 AM
Lowe's "Holoroom" Brings Holodeck, Home Improvement Dreams Closer to Reality
June 13, 2014, 9:06 AM
Intel to Broaden Market for Fanless Tablets, Ultrabooks with 14nm Intel Core M
June 3, 2014, 10:42 AM
ZOTAC Announces Four New Silent ZBOX Mini-PCs
June 2, 2014, 9:21 AM
ZOTAC Announces Funky ZBOX Sphere OI520 Series
May 22, 2014, 8:20 PM
Lenovo Slides Past Apple to Claim #3 PC Sales Spot in U.S., Posts Record Earnings
May 21, 2014, 9:21 AM
Most Popular Articles
Silver-Doped Superconductor Stores 550,000+ Times Earth's Magnetic Field
July 3, 2014, 8:48 AM
Despite Legal Threats Google Begins Posting Warnings of ISP Throttling
July 7, 2014, 5:52 PM
Leaked Photos Show New Lumia 830 Smartphone With Aluminum Frame
July 3, 2014, 11:31 AM
Google Steps up Moral Censorship, Hogties All Ads With Sexual Content
July 4, 2014, 2:00 PM
Apple's iPhone, iPad Update iOS 7.1.2 is Badly Broken for Some
July 8, 2014, 2:00 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information