Intel Corp. cut its third-quarter revenue estimate and withdrew its full-year forecast, saying demand for its chips declined as customers reduced inventory and businesses bought fewer personal computers.
 
The revenue warning sent shares of the world's largest chipmaker down more than 3 percent in pre-market trading.
 
Intel, Advanced Micro Devices and others in the PC industry have been hit by a shaky global economy and consumers shifting toward tablets and smartphones.
 
"Everybody up and down the food chain has been saying this. Intel was one of the last hold-outs," Williams Financial Group analyst Cody Acree said.
 
"The assumption was not whether they'd preannounce but to what degree."
 
Acree said the outlook is in line with what he would have expected after AMD forecast third-quarter revenue below expectations in July.
 
Intel lowered its full-year revenue forecast in July, saying consumer spending in Europe and the United States had been weaker than what the company had previously expected.
 
The company said on Friday it expects third-quarter revenue of $13.2 billion, plus or minus $300 million, down from its previous forecast of $13.8 billion to $14.8 billion.
 
Full-year capital spending is expected to be below the low-end of its previous forecast of $12.1 billion to $12.9 billion, the company said.
 
The company withdrew all other quarterly and full-year expectations.
 
Intel expects gross margin of 62 percent for the third quarter, plus or minus one percentage point, down from its previous expectation of 63 percent, plus or minus a couple of percentage points.
 
The company's shares, which closed at $25.10 on the Nasdaq on Thursday, fell to $24.20 in pre-market trading on Friday. AMD was trading slightly lower at $3.60. — Reuters