Intel forced to lower Q4 forecast by $1 billion

More on those floods in Thailand. A disastrous shortage in HDD supply has forced Intel to revise its Q4 revenue forecast by a billion dollars.

Its Q4 revenue will take an enormous dent but still be phenomenally fat – at $13.7 billion give or take $300 million each way. That’s down from its previous expectation to hit $14.7 billion, give or take $500 million. 

Chipzilla blames its lost dosh on the worldwide PC supply chain. It claims that there is still heavy demand for personal computers and that should ramp up in Q4, but thanks to reduced inventories and less microprocessor purchases Intel will miss out.

Intel thinks that the HDD shortages will keep going into the first quarter, before building processor inventories back up when the storage industry begins to recover.

Of course, there are other questions to be asked about the HDD supply SNAFU, as the industry is threatened by an oversupply after the frenzied clean-up operations of major market players. HDD manufacturers have also been boosting production in areas outside of Thailand, threatening oversupply in the later half of the year. That brings its own set of problems to the egosystem.

An analyst speaking under anonymity told TechEye: “It isn’t just the HDD problem that has caused Intel to issue this warning.  The whole supply chain including the ODMs have been badly affected by the shortage of hard drives and this has almost inevitably put a strain on their ability to make enough notebooks and PCs, meaning less microprocessors inside.”