Intel lowered its full-year revenue forecast on Thursday as demand for its chips used in personal computers (PC) cools off from pandemic highs, sending shares of the company down 5 per cent in extended trade.
It now expects fiscal 2022 revenue between $65 billion and $68 billion, compared with its earlier forecast of $76 billion, as runaway inflation and the reopening of offices and schools lead people to spend less on PCs.
Chipmakers are also under pressure from a spate of Covid curbs in key PC market China and the Ukraine war that have worsened supply-chain snarls and dragged demand further. Global shipments of PCs are expected to drop 9.5 per cent this year, according to IT research firm Gartner.
Intel draws about half of its revenue from selling the chips that power desktops and laptops.
In the second quarter, revenue at Intel’s Client Computing Group (CCG), which supplies PC makers and is the largest contributor to the company’s revenue, fell 25 per cent to $7.7 billion.
Amazon beat Wall Street estimates for quarterly sales on Thursday, as it raked in more fees from its Prime loyalty subscribers as well as from merchants using its services to sell and ship goods.
Shares of the ecommerce giant rose 7 per cent in trading after the bell.
Amazon was a big pandemic winner as lockdown-stricken consumers relied heavily on it for services such as shopping and entertainment, while its cloud offerings underpinned remote working for millions.
However, the retailer, dependent on its vast network of delivery infrastructure, is facing the heat of red-hot inflation as fuel prices and labour costs surge.
To counter rising costs, Amazon said it would raise fees for its delivery and streaming service Prime in Europe by up to 43 per cent a year, following a price hike in the United States.
The world’s biggest online retailer said net sales were $121.23 billion in the second quarter, compared with analysts’ expectations of $119.09 billion, according to IBES data from Refinitiv.
Apple reported profit and sales that beat Wall Street expectations, navigating parts shortages better than predicted and benefiting from unceasing demand for iPhones even as inflation has consumers tightening other spending.
Apple said sales and profit for the quarter ended June 25th were $83.0 billion and $1.20 per share, above estimates of $82.8 billion and $1.16 per share, according to Refinitiv data.
While sales of iPhones and iPads topped expectations, revenue from services, Mac computers and accessories missed Wall Street targets and sales in the crucial China market fell 1 per cent.
Sales of iPads and Macs were $7.2 billion and $7.4 billion, compared with estimates of $6.9 billion and $8.7 billion. Mac sales represented a 10 per cent contraction, after record sales since 2020, first from a work-from-home boost and then from Apple’s new proprietary processor chips.
– Reuters
