Intel Cuts Q4 Revenue Guidance By $1 Billion On Hard Drive Supply

Tyler Durden's picture

Mayhem Monday is the new Merger Monday, with the latest a la carte addition courtesy of Intel, which just cut Q4 guidance.

Full release:

Intel Corporation today announced that the company’s fourth-quarter results are expected to be below the company’s previous outlook due to hard disk drive supply shortages. The company now expects fourth-quarter revenue to be $13.7 billion, plus or minus $300 million, on both a GAAP and non-GAAP basis, lower than the previous expectation of $14.7 billion, plus or minus $500 million.

 

Sales of personal computers are expected to be up sequentially in the fourth quarter. However, the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012.

 

The company now expects the fourth-quarter gross margin to be 64.5 percent, plus or minus a couple of percentage points, lower than the previous expectation of 65 percent, plus or minus a couple of percentage points. The expectation for a non-GAAP gross margin is 65.5 percent, plus or minus a couple of percentage points, lower than the previous expectation of 66 percent, plus or minus a couple of percentage points.

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jcaz's picture

BUWHAHAHAHAA!!!!!!!!!!!!

Uh huh-  Intel using that old excuse again?

ipud's picture

Can't come up with a billion? Join the club...

http://www.youtube.com/watch?v=1yXGsqy9R7E

HelluvaEngineer's picture

No one saw this coming?  I noticed on Newegg two weeks ago that the price of HDDs had doubled.  They're still available, but I assume this was all it took to blow up any margin that Intel had.

mophead's picture

HAARP-FLATION

All this is intentional. I have been beating the inflation drum since September 2009. Back with the fuknshizma disaster I warned everyone to expect disasters of all sorts, then shortages and price hikes. Well what has happened? Exactly that. This is how we get price inflation when "conventional" methods don't work anymore. See my q/a below for other examples.

Question: What is Energy Independence?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What is Global Warming?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What is a Nuclear Disaster?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What is a Corn Subsidy?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What is the FDA/Milk Regulation?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What are water quotas, especially as they apply to California?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What are Middle Eastern wars?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What is Government Housing Support?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What are newer building codes about, such as requiring fire sprinkler systems, etc?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What is bacteria contamination in fruits, vegetables, and other food products?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

Question: What is the criminalization of garage sales in some parts of the US about?

Answer: When money printing alone does not create the desired price inflation required to lower the standard of living for most humans.

WizDumb's picture

PLATINUM SHORTAGE !!!!!

 

duo's picture

who's idea was it to concentrate the world's disk-drive and motor factories in the same flood plain?

EL INDIO's picture

I guess that’s where hard working cheap labour lives

Irish66's picture

just wait for McDonald's to warn

EL INDIO's picture

Goddam !  A hard disk shortage, Where is Benny going to store his zeros ?

Popo's picture

The real panic in Thailand has yet to begin:  There is already an epidemic of Dengue and the WHO is warning of a health calamity of various water-borne illnesses from malaria to cholera due to the flood waters.  (Which are still there, contrary to the MSM).   

 

 

transaccountin's picture

blaming it on the floods; lolz, ya right... on thursday texas instruments warned was down 5% after hours, but closed fking green on friday! can you believe that sht..

Flakmeister's picture

I guess there wasn't a flood of hard disks on the market.....

Lucius Cornelius Sulla's picture

At least they didn't blame it on the El Nina, although their excuse still reeks of complete BS.

Lord Maximus's picture

But Unemployment is 8.6%!!!!!!


That's all that matters...

 

Obama Wins!!

zebra's picture

u actually got a good point, here is how to connect the dots... people are busy working and have no time to shop at BestBuy for Intel-inside machines.

zebra's picture

u actually got a good point, here is how to connect the dots... people are busy working and have no time to shop at BestBuy for Intel-inside machines.

mtremus's picture

that's a huge miss

zebra's picture

well.... don't u know that you can use solid-state drive?

what's Intel's next excuse? decreasing polar bear population ?

lizzy36's picture

Would appear that flooding in Thailand is the new weather excuse for Companies missing numbers. 

Amused if anyone actually believes that revenue miss of up to a billion dollars, is all due "hard drives".

SheepDog-One's picture

So Intel is saying they just cant meet demand?

I bet if I went shopping today I could find plenty of unsold Intel computers on the shelves. 

Yamaha's picture

Correct - they are everywhere and in every store. Why buy one when you can get an iPad? Hard drives my ass......

drivenZ's picture

don't see how this says much about the state of the economy. The HD shortage has been known for some time now

Ruffcut's picture

It looks as the youth if have any cash prefer little phone screens. The Desktop is so 90's. Lap top ain't worth a shit without a plug nearby.

I think I should be like the "the jerk" and design glasses that are magna goggles that make those phone screens look huge. Even a girl with itty bitty titties would be impressed looking into the mirror.

 

crgTMT56's picture

This is less than breaking news. After TI drastically reduced guidance, was this something we really thought was inevitable? Great Barrons article lifted spirits about Intel this weekend. Their position in the server market positions them well, unlike the slutty tablet positioning of ARM.

midgetrannyporn's picture

Another blame it on the weather moment.

Mercury's picture

Government agencies and regulations that demand "compliance" are so busy recording your every move in life they've sucked all the hard drive capacity out of the world supply chain.

I wonder how many gigabytes of permanently stored information are compiled on the average American per day?

EverythingEviL's picture

This has got to be BULLISH!

Barometer's picture

Milli Vanilli - Blame it on the rain

junkyardjack's picture

HAARP needs to create another tsunami so we have something to blame this crash on

HungrySeagull's picture

You guys are way ahead of me.

Yes the factory flooded out.

Yes the SSD prices on Newegg fell while the old style 7200 rpm drives doubled to more than SSD Drives last season.

Yes Intel and others lost money because no one wanted to buy 60 dollar obselete hard drives that suddenly has a 250 dollar price tag.

DUH!!!!

 

Oh yea, dont get me started on the three tera spinner that cannot be recognized by certain motherboards with a specific Bios technology that has been emerging.

 

The last machine I built has 6 SSD's in it. The only spinning hard drive is a 10 year old raptor still plugging away as a backup off USB.

 

The next machine I build probably will not have ANY SSD, just flash devices inside several PCIe slots.

 

Any one wish to take bets on those idiots rebuilding the flooded out factory in the same goddamn spot instead of Salinas Kansas where nothing happens?

 

And someone at the Exchanges probably had a brick followed by acid reflux when buying cheap large drives to keep the backups running all day and night.

pods's picture

My fault, I just picked up a 2 TB external off of Amazon.

pods

TheMerryPrankster's picture

My Kingdom for a hard drive, my Kingdom for a hard drive.

Hephasteus's picture

Fuck your jew chips intel.