Several months through an economic crisis and the world's largest semiconductor company have recently announced they have cut back their sales forecasts for the fourth quarter, as they now expect between $8.7 billion and $9.3 billion, rather than the $10.1 billion to $10.9 billion they had previously forecasted. This comes after they suffered "significantly weaker than expected demand in all geographies and market segments", as well as claims that "the PC supply chain is aggressively reducing component inventories".
Needless to say, in an economic downfall, one would expect this, as both consumers, and as a result, businesses, cut back on spending. Whilst the release of their Nehalem processor range is likely to bring in positive numbers, overall sales will probably lower, as the global 'credit crunch' progresses. Although listing many factors that could affect the fourth quarter, Intel highlighted that "current uncertainty in global economic conditions pose a risk to the overall economy as consumers and businesses may defer purchases in response to tighter credit".
Several technology firms have recently announced plans to cut jobs, and so this further adds to the worries of how the technology market will cope with the economic troubles, should they continue for much longer. If the situation improves, the market should recover, with time. However, if it continues to worsen, it is unclear how smaller companies and suppliers will survive. However, Intel doesn't stand alone: AMD and NVIDIA have both seen shares tumble over the past year.
Whilst the future for the technology market is unclear, Intel's announcement today will undoubtedly serve as a warning to the technology industry.
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