Intel, ARM, HP, Dell Forecast Lower Revenues: Why?

There are clear signs that PC-related and some leading semiconductor firms expect weakening sales for at least the coming third quarter. So the natural question is "why?" Some might suspect a shift of consumer buying demand in favor of tablets, and away from PCs. 

But others might say the slowdown is caused more by generally deteriorating economic conditions, in Europe and elsewhere. 

Intel expects its third-quarter sales to be between $300 million and $1.9 billion lower than previous forecasts. Many see this as a sign of the weakening PC market, especially after HP and Dell posted such disappointing results in part because of a slowdown in PC sales.

ARM, the company that provides the IP inside chips for virtually all of the smart phones and tablets out there, also warned that it anticipates slower sales ahead. 

ARM customersTexas Instruments and Qualcomm also have said they expect a slowdown in holiday sales of devices. Some might say that hints at buyer fatigue. 

Intel is saying demand is affected by several trends, including original equipment manufacturers reducing inventory in advance of the Windows 8 launch, weaker PC demand and slower sales in emerging markets. 

You might say that several trends all are pushing in a downward direction.