Computer maker Apple Computer Inc. and chip maker Advanced Micro Devices Inc. (AMD) each lowered their revenue forecasts Tuesday, citing a broad weakness in the PC market and slow sales overseas. AMD also warned of a "substantial" operating loss.
Apple now expects to generate US$1.40 billion to $1.45 billion in revenue for its third fiscal quarter, down from a previous estimate of $1.6 billion, the company said in a statement. Lackluster sales to consumers and weak markets in Europe and Japan were offered as the main reasons for the reduced outlook.
Apple's third quarter ends June 30, and the Cupertino, California, vendor is due to report its results July 16.
AMD also lowered revenue estimates, in its case for its second fiscal quarter which ends June 30, to between $620 million and $700 million. That's down from a previous forecast of between $820 million to $900 million. The company also said it expects "a substantial operating loss for the quarter," blaming slow PC sales and weak demand for its chips in Europe and North America, according to a statement.
Shares of Apple and AMD both declined during Tuesday's trading ahead of the announcements. Apple (AAPL) fell almost 2 percent, to $20.15, on the Nasdaq exchange. AMD (AMD) tumbled more than 4 percent, to $10.30, on the New York Stock Exchange.