Intel Projects Higher Revenue than planned for Q4

Intel announced that its revenue for its fourth quarter will likely be higher than its original business projections due to a strong demand for computer processors and chipsets (used in computers) and flash memory (used in cell phone technology). Intel expects its revenue for Q4 to be $6.8 to $7 billion. Intel reportedly stated that these numbers are more representative of an "average" quarter; consumer sales have not fallen off as Intel thought they would in October of this year. Intel had originally expected Q4 revenue to be between $6.5 and $6.9 billion. Intel's C.F.O., Andy Bryant issued a statement to the analysts and press: "What we think we're seeing is pretty much a seasonal fourth quarter," Bryant said. "We were concerned about whether consumers would continue buying. There's been some business buying, but pretty much as expected. I don't think we're seeing anything unusual anyplace other than that things are a little better than we expected."

So, it seems that Intel will not have a "blue, blue Christmas" after all in 2002. The next question is, what are the projections for 2003? When will corporate budgets allow for sizeable IT purchases again? Intel executives project that the current inventory of installed desktop computers will begin to show their age soon, if they haven't already. This will require an upgrade of those desktops, if not an outright replacement. Required new network security measures, such as installed virus protection software, also don't run well on older processors and can significantly slow corporate users' ability to multi-task among other software applications and e-mail. It may be more cost effective for corporations to simply trade-in and replace these desktop systems than to spend the money for the upgrades and the human hours for the IT staff to deploy the upgrades.