Intel suffers $1 billion hit

Intel-logoChip megagiant Intel has revised its forecast for the first quarter of this year by close to one billion dollars.

The company said that people haven’t been buying the expected number of business PCs, and distributors, dealers and other vendors haven’t been ordering what Intel expected.

Intel thought that small and medium sized companies would flock in their droves to upgrade the now defunct Windows XP operating system. But that hasn’t happened.

It also said that currency conditions in Europe had affected its business.

Now Intel thinks its first quarter revenues will amount to $12.8 billion – down from its original estimate of $13.7 billion.

But if you’re starting to feel sorry for the behemoth, you don’t need to be. It said it is still expecting its gross margin to be about 60 percent, a gross margin that many other enterprises would die for.