Intel Wednesday cut fourth-quarter revenue expectations due to a widespread drop in customer demand around the globe.
The chip maker said it expects to report fourth-quarter revenue of approximately $8.7 billion to $9.3 billion, down from its previous expectations of $10.1 billion to $10.9 billion in sales for the quarter.
"Revenue is being affected by significantly weaker than expected demand in all geographies and market segments. In addition, the PC supply chain is aggressively reducing component inventories," the company said in a statement.
The company also lowered its gross margin expectations to approximately 55 percent, down from previous expectations of approximately 59 percent.
The vendor is set to release its fourth-quarter results on Jan. 15, 2009.
Other chip makers have also been impacted by the struggling economy. Nvidia on Nov. 6 reported a 20-percent drop in third-quarter revenue year-over-year and predicted a revenue drop of as much as five percent year-over-year for its fourth quarter. That same day, AMD laid off 500 employees, or three percent of its workforce.
Vendors across the IT industry have also been tightening their belts. Cisco Systems has canceled its 2009 global sales conference, previously scheduled for August 2009 in San Francisco, as part of its efforts to trim $1 billion in costs and expenses through fiscal 2009. On the retail side, consumer electronics chain Circuit City filed for Chapter 11 bankruptcy protection, while rival Best Buy cut its full-year profit forecast due to weakening consumer spending.