(Reuters) – Chipmaker Intel Corp. INTC.O forecasts revenue in the quarter during analysts' estimates and cuts its full-year outlook on Thursday, sending its shares down 7 percent and raising concerns that a downturn in the industry may continue until the end of 201[ads1]9.
The company reduced its 2019 revenue to $ 69 billion , from $ 71.5 billion, it told investors to expect when they last reported revenues in January.
Santa Clara, California-based chipmaker, said it expects revenues and a $ 15.6 billion profit and 89 cents per share in the second quarter ending June, compared to analysts' expectations of $ 16.85 billion and 1, $ 01 per share.
Chipmakers are struggling with a decline in demand due to a weakening Chinese economy and as manufacturers face the consequences of ongoing trade disputes.
Revenue from Intel's higher margin data center business fell 6.3 percent to $ 4.90 billion in the first quarter, damaged by the weakness of the China market and the inauguration correction. Analysts expect a turnover of $ 5.10 billion, according to financial and data analysis firm FactSet.
Intel, Apple's only iPhone chip provider for the past year, said last week that it was the exciting 5G smartphone modem's opening hours after Apple and Qualcomm Inc
Revenue in Intel's client database, targeting PC makers and still The biggest contributor to sales, rose 4.45 percent to $ 8.59 billion, beating FactSet estimates at $ 838 million.
The shares traded at $ 53.75 in trading after the clock.
(Reporting Sayanti Chakraborty in Bengaluru, editing of Sriraj Kalluvila)