Tuesday, December 13, 2011

Icy News: Intel Also Affected by HDD Shortage

"Intel Corporation announced that the company's fourth-quarter results are expected to be below the company's previous outlook due to hard disk drive supply shortages. 

The company now expects fourth-quarter revenue to be $13.7 billion, plus or minus $300 million, on both a GAAP and non-GAAP basis, lower than the previous expectation of $14.7 billion, plus or minus $500 million.

Sales of personal computers are expected to be up sequentially in the fourth quarter. However, the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012.

The company now expects the fourth-quarter gross margin to be 64.5 percent, plus or minus a couple of percentage points, lower than the previous expectation of 65 percent, plus or minus a couple of percentage points. The expectation for a non-GAAP gross margin is 65.5 percent, plus or minus a couple of percentage points, lower than the previous expectation of 66 percent, plus or minus a couple of percentage points.

All other expectations are unchanged." -via Storagenewsletter

This is interesting seeing Intel reporting to be lower than what they expected due to hard disk drive shortages. The fact that storage is not their main focus, with microprocessor being their bread and butter. However, this report shows the importance of hard drives as being an essential component to function and thrive. What other companies do you think would report a lower revenue for Q4? Feel free to let us know!

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