Intel has recently released its quarterly earnings report, and the results aren’t pretty. Sales slipped 23 percent and profit is down by a numbing 90%.
For all of 2008, Intel earned $5.3 billion, 24 percent lower than a year ago, on sales of $37.6 billion, a 2 percent decline.
PC demand is sinking fast, which takes its toll on Intel because Intel owns 80 percent of the market for microprocessors, the brains of personal computers. Market research firms IDC and Gartner Inc. reported this week that PC sales growth in the fourth quarter was the worst it’s been in six years, with the slump expected to drag out until possibly 2010.
Bobby Burleson, managing director of equity research for Canaccord Adams, called Intel’s profit forecast disappointing, but said it likely indicates that Intel has “come clean with what sounds like a worst-case scenario for this year.”
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