Intel Losses Dull Luster of Gadget Show

Revenue slump looms over Consumer Electronic Show

By Ambreen Ali, Newser User

Posted Jan 7, 2009 5:12 PM CST

(Newser) – Intel's prediction today of abysmal holiday losses has cast a shadow over the year's flashiest gadget show, which starts tomorrow, writes Brooke Crothers of CNET. Fourth-quarter revenue is expected to be down 23% from 2007 and 20% from the third quarter. Intel is the world's biggest chip maker, and the bleak forecast signals trouble up and down the tech supply chain. "Going into CES, the picture is not pretty," says Crothers.

He's referring to the three-day Consumer Electronics Show in Vegas, though he notes that some tech products could be recession hits. Netbooks—laptops that cost hundreds, not thousands—are on fire, but that's better news for consumers than for industry profits. "Just as General Motors must wean itself off lumbering SUVs, so may Intel, et al, be forced to wean themselves off high-profit notebook computers," Crothers writes.

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Intel sets up camp at the Consumer Electronics Show. The company announced worse fourth-quarter losses than earlier predicted. (AP Photo/Jae C. Hong)

The Consumer Electronics Show has the shadow of a hurting economy looming over it, as today's announcement from Intel reminded. (AP Photo/Jae C. Hong)

Some gear makers don't expect to make any orders this year, hurting the ailing chip industry further. (AP Photo/Isaac Brekken)

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Intel Losses Dull Luster of Gadget Show