Intel has cut its Q3 forecast, with guidance lowered from $13.8 billion–$14.8 billion down to $12.9 billion–$13.5 billion. That's a substantial drop in sales, attributed to factors including weakness in Asia and the slowing growth of emerging markets.
It's the lagging PC market that spells out the biggest problems for Intel, though. Fool.com analyst Andrew Tonner has long been bullish on the chip maker as a franchise-type business, but Intel's fortunes are so closely tied to PC manufacturing that any difficulties in that arena can and will drag down earnings.
All eyes have been on Windows 8 as the single best hope to drive potential upgrade cycles for PC makers. However, as consumer trends continue in favor of smartphones and tablets for personal-computing needs, it appears that even the release of Microsoft's long-awaited new operating system may prove an insufficient catalyst to revive the PC market.
Of course, when it comes to dominanting markets, there's no question that Intel still holds top place in the PC microprocessor arena. That market is maturing, though, and Intel will find itself in a precarious situation for the longer term if it doesn't locate new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors need to know when it comes to the chip giant. Furthermore, you'll continue to receive updates as news develops for an entire year. Click here now to learn more.