Channel Beat: Intel Blames Windows XP For Lowered Revenue Outlook

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Intel is less optimistic about its quarterly revenue numbers, and the company says it’s because of Windows XP.

Intel previously predicted its revenue numbers for the quarter would be at $13.7 billion in sales, but now the company has lowered that number by about a billion dollars. Intel said PC sales are weaker than expected due to business customers who have been slow to upgrade from Windows XP. Intel’s shares dropped 4 percent after the company’s news.

The tablet market is also suffering from slow growth, according to research firm IDC. IDC predicted the market will only grow 2.1 percent in 2015.

In the fourth quarter of 2014, tablet shipments saw a year-over-year decline of 3.2 percent. That’s because of the long replacement cycles of tablets. Mobility solution providers say demand for phablets and Ultrabooks have also slowed down the market.

EMC Chairman and CEO Joe Tucci told investors this week the company has no plans to spin off VMware. Tucci also has not indicated when he will retire.

Tucci's latest contract expired in January, but EMC partners told CRN EMC will not make any announcements that could cause its stock to decline. However, EMC’s stock fell more than 3 percent after the event. Tucci would not comment on whether HP and EMC have held merger talks.

Next Thursday, CRN will kick off its first-ever Channel Madness tournament, seeking out the highest-rated Channel Chief from audience votes. Stay tuned!

PUBLISHED MARCH 13, 2015