Intel Cuts Prices Analysis

First, let´s take a look at the hard facts. Intel, while not struggling by any means, sees troubled waters on the horizon. They have projected that at best, overall revenue for the next quarter will be down 15 percent, plus or minus "several points". In other words, due to all the recent economic uncertainty, Intel doesn´t know how well they´ll fare out next quarter and are bracing for the worst, and if you take "several points" to be a conservative five points, then you´re talking a 20 percent loss of revenue compared to the previous quarter! Of course, those familiar with the PC industry know that there is a seasonal slowdown in the industry on the consumer end of things, but even 15 percent is a high number just based on that factor alone. This comes on the heels of Intel setting a record for microprocessor unit shipment in the fourth quarter, while holding chip
prices relatively flat when compared with the third quarter. In Summary, Intel´s got their umbrellas out and they´re ready for a bit of rain.