$1bn off Intel profit forecast

Charlotte Henry
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INTEL has cut $1bn (£671m) from its profit forecast for the first three months of 2015, as small businesses put off upgrading their computers.

The US computer chip maker said yesterday that it now expected first-quarter profit to be $12.8bn, seven per cent lower than the $13.7bn originally forecast.

Intel had hoped that Microsoft removing support for its XP operating system would prompt many to upgrade their hardware, but this has not happened.

Intel shares closed down 4.73 per cent yesterday. Microsoft shares were also hit due to the company’s close relationship, and it finished down 2.29 per cent.