Intel slashes sales forecast on hard drive shortage
Today, Monday, Intel announced it expects to miss its sales forecast for for the current quarter due to hard driver shortage caused by the floods in Thailand. Expected results are now said to come between $13.4 billion and $14 billion for fourth-quarter sales.
PC makers are reducing inventory since hard drivers have become more difficult to find with recent events, which causes scaling back for semiconductor purchases from Intel.
Intel believes hard drive shortages will continue into first-quarter of 2012. PC manufactures are expected to purchase processors after the hard drive supplies recover through at least March 2012, at which point says it will pull through.
Thailand manufactures electronics for hundreds of companies world-wide, but due to its worst flooding in decades, the production of hard drives has come to a standstill. Intel shares fell more than 4% after news of the reduction from the $13.4 billion to $14 billion than its previous forecast.