Chip-making giant Intel Corporation’s preliminary fourth-quarter revenues represent a clear sign of the downward spiral in tech spending worldwide, dropping 23pc year-on-year to about US$8.2bn.
Lower than the company’s previous expectation provided last November, this announcement dragged Intel’s share price down by 6pc on early trading.
Intel explained the fall as being “a result of further weakness in end demand and inventory reductions by its customers in the global PC supply chain.”
The preliminary estimate of gross margin for the fourth quarter is at the bottom of the previous expectation of 55pc, plus or minus a couple of points, the company’s statement said.
Ireland is Intel’s manufacturing and technology centre for Europe, employing around 5,000 people. There has been no statement on how jobs may potentially be affected.
When the corporation slashed its fourth-quarter sales forecast by US$1bn to US$9bn in November, Leixlip plant spokesman Colin McHale was quoted as saying Intel might have to make “pragmatic decisions”. More may be revealed when Intel makes its previously scheduled earnings announcement on 15 January.
By Sorcha Corcoran