Intel expects revenue to be approximately $12.8 billion, plus or minus $300 million, down from $13.7 billion, plus or minus $500 million.
“The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain,” Intel wrote in a statement released Thursday morning. “The company believes the changes to demand and inventory patterns are caused by lower than expected Windows XP refresh in small and medium business and increasingly challenging macroeconomic and currency conditions, particularly in Europe.”
Many vendors in the PC space, including Intel, have been the victim of a prolonged upgrade cycle. Though Windows XP has been pushed to its end of life, many large enterprises are hanging on to their Windows 7-based machines. Microsoft (NASDAQ: MSFT), Intel and other vendors in the space hope that the upcoming release of Windows 10 will spur demand for upgrades.