The rejuvenation of outdoor activities and large event gatherings is spelling trouble for tech companies as a limited desire to spend the summer of 2022 indoors playing Call of Duty or mining Bitcoin has resulted in a significant drop in consumer sales for Intel.
Intel reported a 22% decline in revenue this quarter than the year prior resulting in a net loss of $454 million and missing consensus by 14%. A tough quarter followed by low expectations of things getting better caused Intel’s stock price to close with a loss of 8% on Friday.
Intel has stated that while large corporations are still maintaining high purchasing levels, they have seen a significant decrease from small to medium-sized companies. Intel neglected to state why that might be, but some speculations turn to inflation, rising costs, and a general grim outlook on the economy. Intel has also stated that consumer purchasing for personal computers has dropped significantly since the pandemic with many consumers choosing to spend their time out in the community rather than within their homes.
Supply chain issues have continued to plague the tech industry as well with estimates stating that it could take months to unfold and solve current supply chain issues.