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INTEL has cut its 3Q2012 outlook to US$13.2 billion, down from a previously-expected revenue of between US$13.8 billion to US$14.8 billion.
These results from Intel, a giant in the semiconductor industry, represent a yardstick for the sector, which has suffered from the economic crises in Europe and the US.
According to Intel, its customers are reducing inventory in the supply chain, market demand is slowing, and the enterprise PC market segment is not performing either, although the data centre business is a silver lining on the cloud.
Earlier, the Semiconductor Industry Association showed weak sales in the industry in July.
The outlook is further muddied by a slew of pending technology releases, such as Microsoft Windows 8 (release 26 October), which may be prompting enterprise users to hold off on new PC purchases until the new operating system is available.
Intel has, however, maintained its expectations for R&D spending in the third quarter, although it is also cutting its full-year capital spending, as it accelerates the re-use of existing equipment to the 14nm node.