SAN FRANCISCO/NEW YORK (Reuters) - Intel Corp cut its third-quarter revenue estimate more than expected on Friday due to a decline in demand for its chips as customers reduce inventories and businesses buy fewer personal computers.
Intel also said it was scaling back capital spending as a result of the business slowdown. Intel's stock was down 3.7 percent on Friday afternoon...
A revision of Intel targets had been expected by some analysts after PC makers Hewlett Packard Co and Dell Inc warned of slow demand last month, a development that has been compounded by a shaky global economy and consumers shifting toward tablets and smartphones.
But the 8 percent reduction in the top chipmaker's revenue outlook was much more severe than expected. Intel also withdrew its full-year forecast.
Bernstein analyst Stacy Rasgon said the size of the Intel cut was surprising. Weakness in PC sales to businesses and governments, known as enterprise sales, cited by Intel also raised concerns.
"In the last six to eight quarters, consumers have been weak but the enterprise was strong. Now the enterprise is weak," Rasgon said...
