In Wake Of Declining Desktop Sales, Intel Slashes Revenue Forecast
The Santa Clara chip maker placed the bulk of the blame on small and medium businesses standing pat with Windows XP. Microsoft finally put the legacy operating system to rest a year ago in April, leaving those who don't upgrade at a severe security risk as newly discovered vulnerabilities go unpatched, though businesses have the option of paying for extended support. By going that route, businesses on a strict budget can delay the costly process of upgrading to a newer operating system and/or new hardware.
CRT monitor? Windows XP? It's time to upgrade! Image Source: Flickr (Daniel Oines)
It can't all be blamed on Windows XP. The number of machines running Windows XP now compared to a year ago has eroded -- StatCounter's data shows that Windows XP is installed on just over 10 percent of the world's PCs, while Net Applications has the OS clinging to a little over 19 percent. In April of last year, those figures stood at 15.83 percent and 26.29 percent, respectively.
Investors still shouldn't hit the panic button. Despite the challenges, Intel is coming off a record fourth-quarter in which it collected $14.7 billion in revenue for a $3.7 billion profit. That bumped the chip maker's full-year totals to $55.9 billion revenue and $11.7 billion in profit.
Intel's shares fell nearly 5 percent to $30.63 following the revised forecast.