Intel Hammered By PC Slump 2Intel Hammered By PC Slump 2

Amid the slumping PC market, chipmaker Intel last week reported that, including costs related to acquisitions, net income for its third quarter ended Sept. 29 fell 96% to $106 million. Excluding costs, net income was $655 million, off 77% from a year ago. Revenue fell 25% to $6.54 billion.

On the bright side, CEO Craig Barrett says that Intel (INTC-Nasdaq) expects moderate growth in microprocessor and flash-memory sales in the fourth quarter. But he notes that uncertainty in the global economy makes it particularly difficult to predict product demand."

Intel's woes could be a boon to IT buyers, at least in the short term. "They'll continue cutting chip prices as long as demand remains weak," says Technology Business Research analyst Brooks Gray. "Computer makers, Dell in particular, will pass some of those savings on to customers."