Nomura Securities analyst Romit Shah believes the cut is just a sign of things to come. He expects Intel’s earnings could sink to as low as $2 per share, well below the current estimate of $2.26 per share and Intel’s earnings this year, expected to hit $2.17.
The downturn has been brought about by new industry trends, namely tablet computing. Shah believes things will only get worse for Intel next year, as it will become increasingly difficult to sell costly ultrabooks in a tablet-centric market. Let’s not forget that Windows RT is also on the way and that Windows tablets could become a very tempting alternative to ultrabooks and ultraportables in the future.
Intel closed at $23.26 Monday, dropping 93 cents or 3.8 percent. Shares slipped another 3.6 percent on Friday. However, it is worth noting that the entire industry is hurting, so Intel is no exception.