Intel issues weak fourth-quarter sales forecast on lackluster demand for enterprise chips, stock falls

Virtually every market analyst agrees that the PC market continues to decline. It’s been some time since the number of PCs being purchased actually increased, with the single exception typically being high-end notebooks and 2-in-1s. Now, we have news that Intel’s Q4 2016 fiscal report has signaled continued bad news for the Intel, at least for their enterprise business.

As Bloomberg reports, Intel’s stock took a beating on the news that the company was forced to reduce its forecast going forward from the double-digit growth in data center and corporate network sales it had previously anticipated. It’s stock fell 5.9% after showing a 9.6% increase during the third quarter on on holiday-boosted processor orders,

The news on general sales to PC makers is mixed, as Bloomberg indicates:

Intel’s third-quarter sales reached a record, lifted by processor orders from PC makers that decided to shore up their chip supplies ahead of the holiday shopping season. So far, demand hasn’t come surging back, meaning that customers will again pare orders as they work through those stockpiles of chips. The world’s largest semiconductor maker also backed off an annual forecast for double-digit revenue growth in server chips for data centers and corporate networks, its most profitable business.

And so although the PC market is in decline, the news isn’t nearly so bad as for Intel’s corporate business. We’ll be keeping our eye on developments, as the health of the PC industry in general has obvious implications for Microsoft’s ability to grow Windows 10.

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Do you think the PC market will recover any time soon?