Intel's December Profits Down 23% Year-Over-Year

Posted 01/08/2009 at 8:36am | by Paul Lilly

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AMD's financial struggles have been well documented throughout the past year, but it isn't the only chip maker feeling the sting from a lackluster global economy. And while the technology world is abuzz at CES showing off new gadgets and prototypes, Intel's fourth-quarter warning comes as a sobering reminder that all is not well.

The No. 1 chip maker said it expects just $8.2 billion in revenue for the quarter, representing a disappointing 23 percent drop from the same quarter one year ago, and a 20 percent tumble from Q3. Intel had warned in November that its Q4 results would be less than previously forecast, but at the time, the company still expected to pull in up to $9.3 billion.

Perhaps most disheartening about the less than expected revenues -- for Intel, anyway -- is what impact the netbook industry might be having. The netbook market has exploded in recent months, and it's been Intel's Atom processor that has provided the dynamite. But unlike much higher priced notebooks, these $500 and under laptops don't offer the same attractive profit margin, apparently no matter how well they're selling.

How's that for a double-edged sword?

Image Credit: intel