PCs sales in Q4 2012 will go down; forecasts Intel
On Tuesday, the world’s largest chip maker, Intel Corporation saw Wall Street’s lowered third-quarter views. Therefore, the fourth-quarter sales and profit margin guidance has hoisted new worries about its potential diagnosis at a time
It is found that, the main reason for this fall in PC sales is due to the, change in the people’s mind, as they choose to buy a tablet rather than a laptop. Another reason behind this is the weak global economy that cut back the expenses of corporate on computers.
Intel has stated that, this usual obstacle in sales has occurred, as the holiday season is on the threshold of cutting in half this year. Few analysts have predicted that, after the launch of Microsoft’s new operating system Windows 8, it will get consumers excited about PCs again and may escalate the sales in the next quarter.
As per the reports, the sales revenue of Intel from PC chips has cut down to eight percent in the Q3, while comparing it with the previous year’s Q3. The major research companies like, Gartner and IDC has also reported that, all over the world the sales of PCs have come down to more than eight percent. Intel shares were decreased to 3 percent in after-hours trading Tuesday, after the company released its results. Shares increased to 2.9 percent to 22.35 percent in the regular session. Yet, Intel is still on to top the Wall Street’s target of 49 cents in earnings per share on sales of $13.23 billion by the end of @012’s Q3 by September 29. Intel had got down its Q3 sales position on September 7, stating the enterprise PC market was soft and emerging-market demand was slowing.
Intel is predicting that its sales will reach $13.6 billion by the end of the year. While Analysts polled by Thomson Reuters are expecting that it could be $13.74 billion, which 1% low comparing to the last year. Intel did not provide EPS guidance, but analysts have been modeling 53 cents a share, down 17%. Intel predicts that its gross profit margin will be turning down in Q4 to 57% from 63.3% in the third quarter.