Intel cuts 2013 revenue forecast, capex as PC industry sags
Intel sees softer sales in China than earlier anticipated
Intel cut its full-year revenue forecast and said it is scaling back capital spending as it adjusts to a painful contraction of personal computer sales and economic weakness in China, one of its biggest markets.
The forecast and cut in capital spending were announced in the company’s quarterly earnings report, the first under new Chief Executive Brian Krzanich.
The soft-spoken manufacturing guru, who took over as chief executive in May and faces falling PC sales and a hyper-competitive mobile market, was quick to acknowledge Intel’s past errors. He said the top chipmaker would aggressively speed up the rollout of new Atom mobile chips.
“Intel was slow to respond to the ultra-mobile PC trends,” Krzanich said. “We will move Atom even faster to our leading-edge silicon technology.”
Within days of taking over in May, Krzanich launched a sweeping company reorganisation. He has also been spending a lot of time with manufacturing customers, meetings that will quickly lead to more mobile business for Intel, Chief Financial Officer Stacy Smith told Reuters.
Intel dominates the PC industry, but it has been slow to make its chips suitable for smartphones and tablets.