Intel in second revenue warning

Slowing demand for computers has hit chipmakers

Intel, the world's biggest computer chip maker, has cut its forecast for its fourth-quarter earnings again as spending on computers slows.

Intel estimated that its quarterly revenue was likely to be 23% lower for the three months to the end of December from a year earlier at $8.2bn (£5.4bn).

This is the second downward revision since November's $9bn estimate, but analysts said it came as no surprise.

Before November, Intel had estimated quarterly revenues would reach $10.9bn.

"It shows that IT departments are being very careful with their dollars," said Kim Caughey, senior analyst at Fort Pitt Capital.

Walter Todd, a portfolio manager at Greenwood Capital Associates, said: "If you are surprised by this news then you've been on a desert island. We all know the economy is weak."