Intel Lowers Q4 Sales Expectations By $1B Due To PC Makers Reducing Inventories

Intel has just announced that its fourth quarter results are expected to fall below the company’s previous outlook because of hard disk drive supply shortages.

Intel now expects fourth quarter revenue to be around $13.7 billion, plus or minus $300 million, on both a GAAP and non-GAAP basis, which is $1 billion lower than the previous expectation of $14.7 billion, plus or minus $500 million.

Intel explains that while sales of personal computers are expected to be up in the fourth quarter, the PC supply chain is reducing inventories and microprocessor purchases (this is where chip maker Intel is hurt) as a result of the hard disk drive supply shortages. So basically, PC makers aren’t making as many computers, which is cutting into Intel’s revenue when it comes to supplying chips to these device makers. Intel expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012.

Intel just came off a strong third quarter, in which the company had its most profitable quarter ever.