SAN FRANCISCO – Intel's sales in the first quarter and the forecast for the second quarter did not meet Wall Street's expectations, while company executives reiterated plans to launch the first 10-nm products at the end of this year.
Intel (Santa Clara, California) also cut its sales target for 2019 after customers in China and elsewhere cut orders. Intel said it expects sales of around $ 69 billion this year, down from the $ 71.5 billion forecast it gave in January. Revenues of $ 69 billion will fall by 3% from 2018.
"We see buyers becoming more cautious in their buying schemes, with the toughest slowdown in China," said George Davies, the newly appointed Chief Financial Officer of Intel, in a conference call with analysts following the report in the first quarter.
Intel will not comment on the alleged exit from the map
Davis says demand pressure is particularly evident in Intel's business center, where executives see continuous inventory correction in businesses and fills customers. Clouds of services, which significantly increased significantly last year, slowed down to tighten the capacity they added, Davis said.
Robert Sven, Intel CEO, said that talks with customers and partners made it clear that a reduction in memory prices has intensified. He said these talks also made it clear that the census and capacity expansion by data centers is more intense than Intel, which was originally expected and that China's economic leaders have grown.
Lebed also assured analysts of the call that Intel has increased its 10-nm production speed by almost double in the past four months and remains on track to deliver 10-nm parts by the end of the year.
The plan is from last year to promote the company's first 10-nm products during the holiday season in 2019. This timetable was put into question earlier this week, when Tweakers, a Dutch-language IT news website, announced what was considered Intel's trusted roadmaps, which showed that Intel's 10-inch notebook processors will become available on a limited basis , starting from the second quarter. The authenticity of these maps – which also showed that Intel will not have desktop processors available until 2022 – has not been confirmed. Intel declined to comment.
But Intel confirmed the holiday rest in 2019, adding that it hopes to begin to qualify the first processors of the Lakers-U laptop this quarter. The company also said it expects to deliver more 10-nm products this year, then pre-planned.
"In view of the progress we have made at 10 nm, in the fourth quarter we will transfer more units than we previously expected," Swan said.
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