Intel adjusts expectations due to disappointing demand in PC market

Chip giant Intel has lowered its expectations for the third quarter of its current fiscal year. The company points to disappointing demand in the traditional PC market as the main cause of the adjustment.

Intel made last Friday familiar It expects revenue of $11 billion for the third quarter of 2010. In July, the chip manufacturer indicated that it expects a turnover of 11.2 to 12 billion dollars. According to Intel, the lower turnover is a result of disappointing demand in the consumer PC market, with especially the sale of notebooks under pressure.

Although the manufacturer indicated at an earlier stage that the iPad falls into its own category with which Intel can also broaden its own portfolio, an alternative with Intel chip has not yet been found. The sales of the iPad also seem to be at the expense of the sales of notebooks. For example, research firm Goldman Sachs has calculated that 40 percent of the iPads Apple will sell in the second half of 2010 will come directly at the expense of notebook sales, writes The Wall Street Journal.

While iPad sales appear to be impacting traditional PC sales, it’s questionable whether that’s the primary reason behind Intel’s revised expectations. Market analysts have been skeptical about Intel’s expectations at an earlier stage, which may have overestimated the fledgling economic recovery.