Intel braces for 8% quarterly revenue drop as PC sales tank

PC chip giant Intel has told investors it anticipates its current-quarter revenue could drop by as much as 8% year-on-year as PC sales plummet.

The company predicts its current-quarter revenue will drop by up to 8% year-on-year to around $12.9 billion after a first-quarter year-on-year revenue drop from $12.58 billion from $12.91 billion.

According to Reuters, the company has also announced it is slashing its 2013 capital spending from $US13 billion to $US12 billion.

However, the company has surprised investors by predicting its full-year growth target, claiming the release of the Haswell chip, new ultrathin laptops and an improving economy would improve its sales in the second half on 2013.

Last week, SmartCompany reported analysts at IDC released new figures showing worldwide PC sales had dropped by a massive 13.9% during the first quarter of 2013, with Microsoft’s Windows 8 platform blamed in part for the fall.

“At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market,” IDC clients and displays program vice president Bob O’Donnell said of the PC slump.

“While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices.”