Intel has announced that it has lowered its expected first-quarter revenue from the original US $13.7 billion down to US $12.8 billion.

The change in revenue outlook, according to Intel, is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain. Apparently, small and medium businesses are not as keen to refresh their Windows XP systems while macroeconomic and currency conditions, particularly in Europe, are not helping either.

According to Intel, its data center business is meeting expectations and the company is forecasting that its gross margin will remain at 60 percent.

Intel has also withdrawn all other expectations and will update the results during company's first-quarter earning report scheduled for April 14th.



Source: Intel.com.