Tuesday, December 13, 2011

Hard Drive shortages will cost Intel $1bn

The Hard Drive shortages caused by the flooding in Thailand has hit the entire PC industry, and very few manufacturers have escaped unscathed. And a big company like Intel is no exception to the norm.

In a press release issued earlier today, Intel has stated that they have revised their fourth quarter revenue results in light of how hard the PC industry is hit by the hard drive shortages. As such, their new revenue for Q4 is expected to be $13.7 billion (plus or minus $300 million), down from the original estimates of $14.7 billion (plus or minus $500 million).

Even so, they expect the hard drive shortages to continue well into the first quarter of 2012, with the supply chain easing around the first half of 2012 and things returning to normal by then.

“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.”

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