Intel announced a substantial reduction in its predicted revenues for the current first quarter of 2015.. The chip maker puts some of the blame on lower Windows-based PC business desktop sales, as many of them, have yet to buy new hardware to replace older PCs that use Windows XP
Intel is now predicting that it will bring in revenues of $12.8 billion for the quarter, well below its initial prediction of $13.7 billion. In its press release today, Intel stated:
"The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain. The company believes the changes to demand and inventory patterns are caused by lower than expected Windows XP refresh in small and medium business and increasingly challenging macroeconomic and currency conditions, particularly in Europe."
The fact that many companies are apparently still not updating their PCs not only hurts Intel but could be an issue that might affect Microsoft as well. It is certainly an odd time for Intel, who are currently refreshing their chipsets with the new Broadwell series. Indeed, today's laptops, Ultrabooks and 2-in-1s are some of the most exciting technology around, finally delivering thinness and great battery life.
It will be curious to see if Windows 10 and the new MacBook turn things around for the company.