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|Monday, December 12, 2011|
Intel lowered its fourth quarter revenue forecast due to shortages of hard drives in the PC industry.
The worst flooding in decades in Thailand dismantled or damaged a large chunk of the world's hard-drive manufacturing operations, causing a slowdown in PC production and the need for fewer chips by computer makers, Intel said. The Santa Clara, Calif., company had said it didn't expect an impact in the current period from the flooding.
"We do expect continued shortage of [hard-disk drives] to be pretty significant in the early part of 2012," Intel Chief Financial Officer Stacy Smith said. "And we expect supply to catch up to overall demand sometime in the first half of 2012. Where exactly that happens over the course of the first half is too early to say, but we do expect that this will catch up sometime in the first half."
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