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Intel Lowers Q4 Revenue Guidance, Blames Hard Drive Shortages

Dec 6, 2011
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Still on the East Side
Microprocessor maker Intel has revealed that its Q4 revenue will be lower than previously expected, mostly due to the hard drive supply problems brought on by the floods in Thailand. Intel says that the HDD shortages are forcing PC makers to reduce CPU inventories, and this, of course, is affecting its sales. The chip company expects the hard drive shortages to continue into Q1 but is hopeful that things will get back on track in the first half of 2012.

The updated Q4 guidance talks about a revenue of $13.7 billion, plus or minus $300 million. This is down from the $14.7 billion, plus or minus $500 million predicted in October.
Nov 11, 2004
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Maybe Intel should offer a discount on SSDs to make up for the hard drive shortage, that way they could sell more CPUs...

Easy Rhino

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they are losing $1 billion in revenue due to the floods. incredible.


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yeh that is insane!
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Maybe Intel should offer a discount on SSDs to make up for the hard drive shortage, that way they could sell more CPUs...
Most drives are bought as storage so really no point in dropping the prices, couldnt drop them far enough for I mean even now a 1TB HDD is only £75, 1TB SSD £2000 or there about.

Even then I want the prices dropped.


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Dec 8, 2011
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There's a good article linking this donwfall to ARM and tablets rise.

From there, Mr. Wrinkle's quote seems to be spot on.: "Intel’s chips cost perhaps five times what ARM chips will cost, says analyst Stacy Rasgon of Bernstein Research. If PC makers can break Intel’s near monopoly, or force the chip maker to cut prices significantly, it could boost their profit margins on PCs."

Moreover, PC makers have other reasons rather than high prices to attempt distancing themselves from Intel.
Just consider they are launching a wave of ultrabooks ... that will be CPU and chipset obsolete in just few months.
Ok, it usually happens every year or two, but this time the ultrabook concept was pushed by Intel itself, and then Intel failed to deliver the upcoming new 22nms CPUs that will provide superb battery autonomy and low temperatures...

On Desktops there are not radical new concepts being released on this waiting period, and also future 22nms CPUs will be retro-compatible there, so PC manufacturers, vendors and customers have the possibility of buying today and still be on the game next year.
At Laptops and Ultrabooks case, manufacturers should be somewhat nervous... they have already released and are going to, plenty of gear that is going to look quite old near May 2012. More so, when the paradigmatic shift that Windows 8 will bring becomes public news somewhen at 2012 Q1.

Intel could have fabricated 22nms CPUs timed for January CES ultrabooks or at least made these 2011 & 2012 Q1 launches upgradeable, but -so far- has decided otherwise.

It looks like Intel's predictions of low 2012 Q1 sales also reflects the idea of buyers postponing acquisitions until 2012 Q2... generated by Intel's own actions in the middle of a radical paradigm shift.