The world’s largest chipmaker, Intel has issued another profit warning for the final quarter of fiscal 2008, with the firm advising that revenue would now be 20 per cent less than originally anticipated.
The move follows an earlier profit warning in November when revenue predictions were cut by 14 per cent.
According to a statement from Intel, the adjustments have been made “as a result of further weakness in end demand and inventory reductions by its customers in the global PC supply chain.”
The Financial Times has speculated that the fact that two profit warnings have been issued in the same quarter indicates that the revenue decline has been “rapid and unexpected.”
A major reduction in corporate IT spending has created revenue shortfalls for a number of firms. Texas Instruments has reduced its predicted sales revenue by over 15 per cent, AMD is anticipating a 25 per cent revenue drop and Lenovo has blamed its profit warning on a lack of business spending.