Intel Cuts Revenue Forecast

By Helen Vince
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Intel has cut its first quarter turnover forecast by almost a billion dollars, saying it now expects turnover to be around $12.8 billion having previously forecast $13.7 billion.

The change in outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain. Intel said it believes the changes to demand and inventory patterns are caused by lower than expected Windows XP refresh in small and medium business and increasingly challenging macroeconomic and currency conditions, particularly in Europe.