Intel cuts 2012 revenue growth forecast to 3-5%

Top chipmaker Intel forecast weak current-quarter revenues, reinforcing fears a wavering global economy and lack of consumer interest are curtailing personal computer sales.

Shaky economies in Europe and the US and a growing consumer preference for Apple Inc’s iPad tablets have been taking a toll on the PC industry.

The company cut its 2012 revenue growth forecast to between 3 and 5 per cent, down from a prior forecast of “high single-digit growth”.

That put Intel’s outlook in line with many investors’ recently reduced expectations and helped cushion the drop in its stock.

Intel supplies processors for 80 per cent of the world’s PCs, but has yet to make significant progress in fast-growing tablets or smartphones. – (Reuters)