Why are chips down at Intel ?

Intel Corp’s quarterly sales gain may slow to its lowest level in a year, signaling the world’s largest chipmaker is losing its status as a growth company.
Intel probably will report sales increase of 7 per cent for the second quarter, according to a Bloomberg survey of 28 analysts, down from an average of 12 per cent for the previous three quarters. Sales will rise an estimated 4 per cent for the year, half the rate in 2007, the survey showed.
Prices for personal-computer processors, the source of most of Santa Clara, California-based Intel’s sales, dropped 20 per cent between 2004 and 2007, according to Mercury Research. That curbed sales growth, which had averaged about 25 per cent a year from 1990 to 2000 as PCs became household items.
“Going back to double-digit growth is going to be difficult,” said Tristan Gerra, an analyst at Robert W Baird & Co in Milwaukee. He has a neutral rating on the stock, which he doesn’t own.

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