Computer maker Apple Computer and chipmaker Advanced Micro Devices both lowered their revenue forecasts on 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 $US1.40 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. Lacklustre 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 on June 30, and the vendor is due to report its results on July 16.
AMD also lowered revenue estimates, in its case for its second fiscal quarter, which ends on 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 fell almost 2 per cent, to $20.15, on the Nasdaq exchange, while AMD tumbled more than 4 per cent, to $10.30, on the New York Stock Exchange.