Intel cited "significantly" weaker-than-expected demand for its products worldwide, and said companies involved in manufacturing PCs are aggressively reducing their component inventories.

Intel now expects its revenue for the quarter ending Nov. 28 to be about US$9 billion, plus or minus $300 million, down from its earlier forecast of $10.1 billion to $10.9 billion, the chip maker said. Analysts had been expecting revenue of $10.3 billion, according to a poll by Thomson Reuters.

Separately Wednesday, IDC said it was lowering its forecast for worldwide IT spending in 2009 as a direct result of the financial crisis. The analyst company expects IT spending to grow by just 2.6 percent next year compared to 2008, down from its earlier forecast of 5.9 percent growth.

Growth in IT spending in the U.S., Western Europe and Japan will hover around 1 percent next year, IDC said. Emerging markets such as Eastern Europe and Latin America will see healthier growth, but not in the double digits IDC had previously expected.

Spending on hardware, with the exception of storage gear, will actually decline next year, IDC said, though software and services will fare better. The industry will lose more than $300 billion in revenue over the next four years as a result of the slowdown, it estimated.