Intel downgrades full-year business outlook

The world's biggest chip maker said net profit for the three months to the end of June were US$2.8 billion, down 4 percent from the same period a year earlier. Revenues were $13.5 billion, up 3 percent from the second quarter of 2011.

"As we enter the third quarter, our growth will be slower than we anticipated due to a more challenging macroeconomic environment," said Paul Otellini, president and CEO of |Intel|, in a statement.

As a result, the company expects to record annual revenue growth of between 3 percent and 5 percent this year, down from the "high single digit" growth it had previously predicted.

|Intel| is expected to detail its forecast later Tuesday in a conference call with analysts.

|Intel|'s lackluster results come against a general lack of consumer enthusiasm for desktop and laptop computers in preference to tablets and smartphones. Global PC sales reached 87.5 million units in the quarter, virtually unchanged from the same period a year ago, according to figures from IDC. The drop was steeper in established markets like the U.S., where PC shipments dropped 5.7 percent.