Intel cuts earnings estimates

Expects to do worse than it first thought. Whoops!

Intel has confessed that it expects its fourth-quarter revenue to drop by 23 per cent compared to last year - down to a measly $US8.2 billion.

The outfit blamed "further weakness in end demand and inventory reductions by its customers in the global PC supply chain".

We can't say we've noticed a drop in demand for ends around these parts but the chip-making monolith says it'll also make less profit that it previously said it would, so shareholders will be grumbling.

The preliminary estimate of gross margin for the fourth quarter is at the bottom of the previous expectation of 55 per cent, plus or minus a couple of points, the firm said.

The firm also said it "will impair the value of its investment" in Clearwire, resulting in a non-cash charge to fourth-quarter earnings of approximately $950 million. This means it'll make between $1.1 billion and $1.2 billion loss in its investments compared with a previous expectation of a loss of approximately $50 million.

The firm has cut R&D spending a bit it said, but things are still looking a bit sticky. Imagine if it had some proper competition. Intel shares were down around four per cent when we last checked.