Intel's Cuts Median Q3 Earnings Outlook by $1.1B USD
September 7, 2012 12:53 PM
comment(s) - last by
Ultrabooks may not be selling as well as expected; 7.7 percent drop in outlook warns of trouble ahead
Intel Corp. (
) on Friday announced a trimming back its Q3 2012 earnings predicition from
an already gloomy
$14.3B +/- 0.5B USD to $13.2B +/- 0.3B USD. The 7.7 percent dip was blamed on a variety of factors.
[Intel] is seeing customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory; softness in the enterprise PC market segment; and slowing emerging market demand. The data center business is meeting expectations.
So what does that mean?
The inventory reductions could be attributable to several factors. First, Windows 8's
for laptops may be leading to supply chain frustrations due to tight supply for the fast-growing display technology. Second, some OEMs have
regarding the risk that Microsoft Corp.'s (
could be poorly received by customers. Changes like the
unwrapping of the Start Menu
into the new "
Windows 8 Theme
" side screen have
outraged some Windows traditionalists
Third, OEMs are moving towards the competition -- ARM Holdings, Plc.'s (
titular architecture. OEMs appear to be responding to ARM's conquest of the tablet and smartphone space by
racing their Windows RT
(ARM Windows 8)
products to market
. Lastly, OEMs may be reacting to weaker than expected Ultrabook demand, slowing purchase orders.
David Schmook, head of North American operations at Lenovo, said in
a previous interview
, "[Intel meeting its 2012 ultrabook targets is] going to require a very strong first couple of weeks of launch of Win 8. They’ll be a lot bigger than they are now. I don’t know if it will get all the way up to 40 percent."
The mobile sector's biggest winner, ARM is now looking to horn in to Intel's PC hegemony via its power-efficient system-on-a-chips. [Image Source: Digital Trends]
The good news for Intel is that ARM chipmakers who rely on third party fabs like Samsung Electronics Comp., Ltd. (
) and Taiwan Semiconductor Manufacturing Comp., Ltd. (
) (TSMC) have
barely squeaked onto the 28 nm node
. Meanwhile, Intel is already mass-producing at 22 nm and will move to
14 nm node in 2014
. Samsung has plans for 14 nm, but it appears Intel is at least a bit ahead at the moment.
Intel did offer another scrap of good news -- it thinks it can repurpose existing machinery/resources at its fabs for the 14 nm die shrink, which it says will allow it to cut capital spending from $12.9B USD to $12.1B USD. That should help it post a bit better net earnings numbers come Q3's official figures.
This article is over a month old, voting and posting comments is disabled
RE: What happened to fact based reporting?
9/8/2012 5:04:31 PM
I think MS desperately needs to put out a "desktop" version of windows 8. Why would they want to leave a large segment of their customers hanging? They need the option of two GUI's(metro and desktop) with 100% software compatibility.
RE: What happened to fact based reporting?
9/9/2012 10:29:41 PM
They want to force their app market down our throats. After spending some days with Win8 RTM, I'm gagging.. Probably going to keep Win7, and hope some linux distro finally gets its act together.
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
PC Makers: Windows 8 May Not Be All It's Cracked Up to Be
August 21, 2012, 12:17 PM
Samsung to Crown Texas Fab With $4B USD Revamped SoC Line
August 21, 2012, 4:16 PM
Want an Intel-Based Windows 8 Tablet? Prepare to Pay up to $300 Extra, Says Lenovo
August 17, 2012, 6:18 PM
Microsoft Looks to Scrap "Metro" Codename
August 3, 2012, 7:52 PM
Intel Reports Increased Net Income, Foresees Slow Growth in Third Quarter
July 18, 2012, 3:41 AM
"Prepare to be Punished": Microsoft is Killing OneDrive With Cuts, Blames Users
November 3, 2015, 8:23 PM
Apple's New "Magic" Peripheral Line Packs High Tech, High Prices
October 13, 2015, 9:39 PM
Samsung Adds 2 TB 850 EVO, PRO SSDs for $800, $1000
July 7, 2015, 4:23 PM
Seagate Senior Researcher: Heat Can Kill Data on Stored SSDs
May 13, 2015, 2:49 PM
How to Recover Most Apps After Your NVIDIA Driver Crashes in Windows 10
March 30, 2015, 12:54 PM
Tinkerer Gets Old School Mac Plus Running on the Modern Web
March 24, 2015, 6:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information