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SAN FRANCISCO – Intel’s lacklustre Q3 report saw its net profit slide 14 percent and the chipmaker report it is scaling back production in Q4 in response to weaker-than-expected demand – is being seen as a dismal outlook for Microsoft’s upcoming Windows 8.

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“It’s becoming increasingly clear that lacklustre PC sales may not revive much, despite Windows 8.

And that fact doesn’t bode well for computer makers and the companies who provide components,” according to a CNet report.

“It bodes even worse for Microsoft, which has essentially bet its business on the success of Windows 8.”

Intel CEO Paul Otellini said the overall PC business should grow at only about half its normal rate in the back half of the year.

“Our customers are taking a cautious inventory approach in the face of market uncertainty and the timing of the Windows 8 launch,” Otellini said.

Added Evercore analyst Patrick Wang:

“Nobody has any idea what PCs are going to do this holiday season. Nobody knows the impact of Windows 8 … but expectations are pretty low.”

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