SANTA CLARA, Calif. (AP) -- Intel is lowering its first-quarter revenue forecast, partly because of softer-than-expected demand for business desktop PCs.
The company said its outlook was also changed due to lower-than-expected inventory levels across the PC supply chain.
Shares fell more than 4 percent in Thursday premarket trading.
Intel Corp. said that it believes the changes to demand and inventory patterns are caused by fewer medium and small businesses refreshing Windows XP than expected, as well as increasingly difficult economic and currency conditions, particularly in Europe.
The company now expects first-quarter revenue to be $12.8 billion, plus or minus $300 million. Its prior guidance was for revenue of $13.7 billion, plus or minus $500 million.
Analysts surveyed by FactSet predict $13.71 billion in revenue.
Intel, based in Santa Clara, California, will report its first-quarter financial results on April 14.