Intel is one of the top chipmakers in the world, but according to analysts' predictions and the Santa Clara, Calif. company's own financial outlook, things are not looking up in the PC business.
Reuters reports that at least eight analysts have shared bad tidings for Intel, with poor economies in major markets (Europe, the US and China) and increasing demand for mobile devices (versus desktops/laptops) to blame.
A report from Gartner in July claimed that PC sales had fallen flat for the seventh quarter in a row during the second half of 2012.
And another analyst, Citigroup's Glen Yeung, told CNBC on Friday that "the worst third quarter in the history of PCs" is right around the corner.
"I would point out that this is the first time ever that Microsoft has changed operating systems, and it's not just PCs," Yeung said. "This time, there's a tablet involved, there's a smartphone involved."
Intel's negative outlook
Intel's lowered its own third-quarter revenue estimate, citing "weaker than expected demand in a challenging macroeconomic environment."
Intel rolled back its estimates by a full eight percent, a figure Reuters claims is "much more severe than expected."
And Intel's shares have fallen 11 percent since the end of April.
Blame poor economies all you want, but the fact is that Intel has fallen behind in the processor arms race, losing ground to chipmakers like Qualcomm in the mobile arena.
With forecasts so low, what can Intel do to bolster its fortunes?
Lean on Microsoft
Intel is looking forward to Microsoft's impending Windows 8 launch with hope in its heart and dollar signs where its eyes should be.
Intel's Ivy Bridge chip successor "Haswell" is expected to be introduced for the 2013 holiday season, and as TechRadar has pointed out in the past, Haswell chips are estimated to consume half the power of current processors.
That makes them a huge draw for energy-conscious customers and those craving better battery life.
Meanwhile, Intel's current Ivy Bridge architecture will power Windows 8 PCs in the fall.
Any number of those factors could combine to sell some PCs in the next year or so. In fact, Intel's counting on it.
Source : http://www.techradar.com/news/computing-components/processors/new-intel-chips-coming-as-sales-outlook-takes-a-hit-1095633
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