The Chips Are Down

Microchip manufacturer Intel's shares dropped 6% on Wall St yesterday after the company revised Q4 revenue down to $8 billion. In October the company was forecasting $10.1-10.9 billion. In November Intel revised this down to $9 billion, saying that there would be no more reductions.

Things could have been worse for Intel if it hadn't developed the Atom processor which powers the new range of low-priced mini laptops called netbooks.

Demand for PCs is clearly waning in the current economic climate.

Chinese-based Lenovo, one of the world's largest computer manufacturers, announced yesterday that is to cut more than 10% of it's workforce, also blaming the economic downturn.

The company also said it expected to see losses in the final quarter of the financial year.