Dell lowers its revenue forecast due to shortage of cpus intel

Dell is one of the largest PC manufacturers in the world, and most of its product range is powered by Intel processors. While AMD-based PCs are becoming an increasing part of Dell's catalog, Intel continues to dominate, making the shortage of these processors a terrible news for the company.

Dell lowers this year's revenue forecast due to Intel CPU shortage

Following the publication of Intel's apology letter for the processor shortage, Dell has lowered its 2019 revenue forecast, leading to a reduction in the company's shares of around 5%. Dell says "the Intel CPU shortage has worsened the qtr-over-qtr", preventing Dell from shipping as many PCs as expected. Simply put, Dell cannot sell processor-free PCs, and Intel's inability to meet demand has placed Dell in a position where it cannot meet market demand for new PCs, either.

Visit our guide on the best processors on the market

This makes it clear that Intel's shortage of supplies is having an impact across the industry and not just the retail CPU market.

While Dell had a strong quarter, with a 4.6% increase in sales, its servers and networks unit has experienced a 16% drop in sales. Dell has lowered its revenue forecast from $ 92.7 billion to $ 91.5 billion to $ 92.5 billion.

Given that AMD will announce 7nm laptop processors at CES 2020, the company will receive a lot of interest from manufacturers, opening up a new business window taking advantage of this situation from Intel. We will keep you informed.

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