Intel’s fourth quarter profits took a hammering as their quarterly net income fell 90% from $2.014 billion to $0.234 billion. The credit crunch had driven revenue down from $10.217 billion to $8.2 billion.
Intel decided to get all the bad news over at once this quarter with a $0.95 billion write off on their WiMax Clearwire investment
The reduction in revenues was due to lower demand and the fact that PC manufacturers were running down their existing inventories of chips.
The exception to this was the new Atom chip, which is used in the new ultra light weight laptops, known as netbooks. These chips are simply too new for the PC manufacturers to have significant inventories.