Intel CEO Pat Gelsinger: “Some of our largest customers are reducing inventory levels at a rate not seen in the last decade,”
Intel claims PC demand has declined so much that PC makers are lowering inventory levels, reducing orders for its CPUs.
Intel’s second-quarter sales fell 22% year-over-year due to weaker demand. The chipmaker lost $500 million throughout the period.
“Our Q2 PC unit volumes suggest we’re shipping below consumption as some of our largest customers reduce inventory at a rate not seen in a decade,” said firm CEO Pat Gelsinger in an earnings teleconference.
Intel expects the PC market to drop by 10% this year. Gelsinger highlighted “widespread consumer weakness” for the goods, although enterprise PC demand remains.
It’s a big change from 2020 and 2021, when the COVID-19 pandemic pushed many to work and study from home. PC shipments reached a 10-year high.
Intel blames its weak financial performance on the economic slowdown and sky-high inflation. Fears of a recession and insufficient demand cause PC vendors to decrease inventories to save money.
CFO David Zinsner cited “worse-than-expected COVID-driven demand reduction and supply dislocations in China” He expects Intel’s revenues to rise as PC suppliers replenish their chip stockpiles.
Zinsner: “We’re at the bottom of revenue.” “Second-half products are looking good.” Intel’s 13th generation Core “Raptor Lake” processors will debut in October. Intel will hike chip costs.
More From Us:Prices And Shortages Of Optical Fiber Will Be Unheard Of In History.
Leave a Reply