Intel warns of falling revenues

Intel, the world's biggest computer chip maker, has warned that its latest revenues will miss market targets due to weaker global demand for PCs.

In the latest sign of lower consumer spending worldwide, Intel said its revenues for October to December would probably be 14% down on predictions.

It now projects fourth-quarter revenue of $9bn (£6bn), down from its previous forecast of $10.5bn.

Analysts said the new figure was much worse than expected.

'Significantly weaker'

"It's very significant," said John Dryden of Charter Equity Research.

"Consumers have basically shut down for the holidays.

"It's so far below what they had expected."

Intel said it was seeing "significantly weaker than expected demand in all geographies and market segments".

It added that its profit was also being affected, although it did not give a exact financial figure.

Instead Intel said its gross profit margin - profit per dollar of revenue after costs are stripped out - would fall to around 55% from the previous 59% guidance.

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