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Intel (INTC) market capitalization is 24th largest in USA at $100.56B, behind the largest two: #1 Exxon ($302.76B) and #2 Apple ($222.80B). This results in Intel being the 7th largest technology company in the USA behind Apple, Microsoft, IBM, Google, Cisco, and Oracle. Paul S. Otellini is President and Chief Executive Officer.
Intel Cuts Q3 Sales Forecast: "Weaker-than-expected consumer demand for consumer PC's in mature markets"
Intel (INTC), on Friday, August 27, cut their Q3 sales projection to $11B +- $200M from the previous forecast of $11.2B to $12.0B stating, "Revenue is being affected by weaker-than-expected demand for consumer PCs in mature markets. Inventories across the supply chain appear to be in-line with the company’s revised expectations." Gross margin estimate was cut from 67% +-1% to 66% +-1%. Intel chips, semiconductors, are in more than 80% of the world's personal computers.
Intel reduced their projections, the Business Outlook, that was only recently provided last month on July 13, 2010. At that time, Intel issued a press release, their Q2 results, titled "Intel Reports Best Quarter Ever". Revenues were $10.8B and Gross Margin was 67%. Therefore, the sales forecast cut has resulted in criticism of Intel's original, now overly optimistic guidance to analysts and investors just over six weeks ago. Apparently Intel management was projecting a stronger economic recovery than is actually occurring?
However, how much of this reduced sales forecast is a decrease in PC demand and therefore Intel semiconductors and how much is a shift away from personal computers to smartphones? That is, a change in the sales mix? On Friday Intel cuts sales forecasts and on Monday Intel announces the acquisition of Infineon, a smartphone chip maker.
WESTCHESTER COUNTY, N.Y. -- Marek Fuchs, TheStreet's media critic, pouts over Intel coverage.
Intel's Third-Quarter Below Expectations (Intel)
Intel to Acquire Infineon's Wireless Solutions Business (Intel)
Intel cuts sales forecast citing weaker consumer PC market (MarketWatch)
Intel Cuts Third-Quarter Sales, Gross Margin Forecast (Bloomberg)
Intel seeks to close mobile gap with Infineon unit (CNBC)
S&P 500: Another Death Cross Arrives (Charts) (MatrixMarkets)
USA Monthly Leading Economic Index: Double Dip Recession or Bottom Bouncing? (Chart) (BoomDoomEconomy)
USA Economic Weekly Leading Index: Double Dip Recession or Bottom Bouncing? (Chart) (BoomDoomEconomy)
USA Q2 GDP Revised Downward to 1.6% (Chart) (BoomDoomEconomy)
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