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Intel has put a chill into the computer hardware business, slashing its quarterly revenue forecast due to an unexpected drop in demand for personal computers and increasing concerns that the recent rebound in technology spending may be petering out.

Intel has put a chill into the computer hardware business, slashing its quarterly revenue forecast due to an unexpected drop in demand for personal computers and increasing concerns that the recent rebound in technology spending may be petering out.
Intel said it now expects third-quarter revenue of $10.8 billion to $11.2 billion and a gross margin of 66 percent, plus or minus one percentage point.
Back in July it had forecast revenue of $11.2 billion to $12 billion and a gross margin of 67 percent.
Earlier this year, Intel said it would soon begin hiring again. And last week, in a demonstration of its spending power, the company agreed to buy computer-security software firm McAfee for $7.68 billion.
Intel’s revised forecast came after research firm IDC last month forecast PC shipments growing at slower rates in the second half as consumer spending slows down.
PC shipments had grown at fast rates in the first two quarters compared to the same quarters last year as economies rebounded from the recession. But PC makers are now taking a more gloomy line on sales for the rest of the year.
Intel shares on Friday actually rose 1.1 percent to $18.37 on Nasdaq. However the shares have dropped 15 percent since mid-July, due to growing concerns that IT spending would not recover as quickly or as strongly as expected.
The company is also facing delays by netbook makers in launching models with Intel’s new dual-core Atom processors.
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