Intel disappoint investors with sales forecast of $10.6 billion
Worldâ€™s largest microprocessor company Intel has announced that they are looking towards a sales forecast between $10.4 billion to $10.6 billion. However, these figures failed to impress the investors who were more optimistic about the company, which has betted on big on mobiles and wireless market.
However, these estimates are pretty close to an earlier statement released by the company on Oct. 18 when the forecasted sales of around $10.8 billion. Even the market experts, Sanford C. Bernstein & Co.’s Adam Parker put the figures to be around $10.6 billion. The company is facing growing competition from AMD, which has recently joined hands with IBM to develop the next generation of microprocessors.
Another reason for disappointing sales is that the company is failing to meet the demand of the market. This factor was pointed out by the Chief Financial Officer Andy Bryant. The companyâ€™s share in the market dropped 78 cents to $24.92 in extended trading after the report. Intel is also facing strong competition from AMD in their dominated Server market. AMD recently grabbed more than 10 percent of the market for server computer chips in the third quarter for the first time.
AMD has also become a favorite with both Hewlett-Packard and IBM. However, the largest manufacturer of PCs in the world Dell Computers continues to remain sellers of PC running exclusively on Intel Processors. Intel on their part can look to provide stronger challenge in the next quarter with their new versions of its Xeon processor line coming out.