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Intel chip shortage hits Dell results

(Image credit: Image Credit: Flickr / Toshiyuki IMAI)

Intel’s chip shortage, as well as both political and economic uncertainty, have all made Dell lower its annual revenue forecast, the media were reporting this Tuesday.

This August, the company said it expected its revenue to be anywhere between $93bn and $94.5bn for the fiscal year ending in January. However, a few months (and an entire US-China trade war) later, Dell’s Chief Financial Officer Tom Sweet says adjusted sales for the fiscal year 2020 will be anywhere between $91.8 and $92.5bn.

Last week, Intel announced that it’s having a hard time delivering components to its customers, mostly due to limited chip inventories and a depleting supply. Sweet said his company will not go by unscratched by this development, expecting its capability to create commercial computers for corporate clients – one of Dell’s most important markets – to be affected.

But it’s not just the PC sales that will be hurt by Intel – there’s a whole slew of additional products and services that Dell sells with its PCs – that market will be affected, as well.

Intel’s shortage aside – there’s also the US – China trade war that’s leaving its mark. Due to weaker sales in China, there’s been a 16 per cent decline in the servers and networking gear revenue for the third quarter of the year.

“Obviously we’re not extraordinarily happy with them right now,” Sweet said about Intel in an interview. “I don’t have a pathway to mitigate the supply constraints that they’ve given me for Q4.”