Intel braced for up to $2bn dent in Q3 top line

High supply-chain inventory and soft PC market see forecast slip from $14bn-plus to $13bn and under

Intel is expecting its third-quarter sales to be up to $2bn (£1.25bn) lower than expected, as the tepid PC market makes a mess of the chip giant's numbers.

In a statement issued on Friday, the company indicated that it expects Q3 revenue to stand at about $13.2bn, give or take $300m. This compares with its earlier forecast of between $13.8bn and $14.8bn.

Profitability is also set to be affected, with gross margin for the quarter set to come in about 62 per cent, compared with the previous projection of 63 per cent.

The chip maker cited customers' unseasonal reductions in their supply-chain inventories as one reason for the downgraded forecast. The "softness in the enterprise PC market segment and slowing emerging market demand" are also picked out as contributory factors.

The company expects its capital spending across the whole of 2012 to be somewhat lower than its previous forecast of between $12.1bn and $12.9bn, "as the company accelerates the re-use of existing equipment".

But, away from the troubled client computing arena, Intel claimed its "datacentre business is meeting expectations".

The vendor has withdrawn all existing projections for the upcoming quarters. It will provide further guidance when it publishes its Q3 numbers on 16 October.