Intel Q4 below expectations – hit by disc drive shortages

12 Dec 2011

Intel is warning that its Q4 financial results will be below expectations, primarily due to a hard-disc drive supply shortage caused by the recent flooding in Thailand.

Intel now expects fourth-quarter revenue to be US$13.7bn, lower than the previous expectation of US$14.7bn.

Sales of personal computers are expected to be up sequentially in the fourth quarter.

However, 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.

Gross margin is now expected to be 64.5pc, lower than the previous expectation of 65pc.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years