Dell lowers its 2019 revenue forecast due to Intel CPU shortages

Humza

TechSpot Staff
Staff member

Intel's been in a tough spot lately, and things seem unlikely to improve for the company anytime soon. On the one hand, there's the business of selling CPUs, which is currently being dominated by AMD Ryzen chips in the US, while a majority of surveyed European consumers showed their preference for AMD over Chipzilla for their next desktop CPU.

On the supplying side, Intel is finding it difficult to meet the demand for its 14nm chips and is reportedly looking at third-party suppliers to pick up the slack. The crisis is also affecting Intel's partners, including Dell, the third-largest PC maker in the world, which had to lower its revenue forecast for 2019.

"Intel CPU shortages have worsened quarter-over-quarter the shortages are now impacting our commercial PC and premium consumer PC Q4 forecasted shipments," said Dell COO Jeffrey Clarke in a recent call with Wall Street analysts over the company's Q3 earnings.

Despite ongoing problems with Intel, Q3 figures for Dell's PC business rose by 4.6 percent to $11.41 billion, taking the total quarterly revenue to $22.84 billion, reports Reuters. However, the company cut its FY2020 revenue forecast down from between $92.7 billion and $94.2 billion to between $91.5 billion and $92.2 billion.

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Dimitrios

TS Guru
Would you buy an AMD based PC from Dell ? I'd rather buy condoms from the Catholic church.

That said, is anyone feeling sorry for Dell?
You serious? This ain't the 1990's. To me Intel is worse. Worst bang for buck and oh add in the monthly security holes.
 

Irata

TS Addict
You serious? This ain't the 1990's. To me Intel is worse. Worst bang for buck and oh add in the monthly security holes.
I meant I wouldn‘t buy it *from Dell*, „the best friend money can buy“.

My point was I‘d much rather trust the Catholic church to sell me a properly working condom than Dell to sell me a nicely built and configured quality AMD PC.

 
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