Intel’s PC business is under pressure as memory-chip prices dent demand and as corporate IT teams have less budget for laptops.
Why Intel’s stock is sinking toward its worst drop in two years
In short
The chipmaker is grappling with a severe slump in its personal computer operations that is driving a multi-year low for shares. Consumer purchases are declining because rising memory-chip prices have placed upward pressure on overall hardware costs. Meanwhile, corporate information technology departments are deliberately scaling back their spending, curbing funds dedicated to new laptop deployments.
Key points
- Higher component expenses are weakening consumer appetite within the personal computer ma…: Higher component expenses are weakening consumer appetite within the personal computer marketplace.
- Enterprise hardware spending is slowing down as IT departments restrict budgetary allowan…: Enterprise hardware spending is slowing down as IT departments restrict budgetary allowances for laptops.
- Mounting operational hurdles inside the personal computer business are heavily depressing…: Mounting operational hurdles inside the personal computer business are heavily depressing the company's stock.