Amid all the happy news of the AMD Shanghai launch there is some gloomy news out also.

It seems that Intel has cut their Q4 predictions by about 19% (roughly $1 Billion). According to an article at the Inquirer, Intel blames this reduction on the current economic crisis and "significantly weaker than expected demand in all geographies and market segments ".

Intel was not the only one to report bad news as Lenovo, Cisco, and National Semiconductor have also posted up gloomy forecasts.

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Intel expects spending slowdowns caused by the economic crisis. Chipzilla predicted its previous sales forecast would now have to be reduced by about $1 billion, as computer makers buy fewer chips and work their way through their existing inventory to save cash.

The chip maker is now expecting fourth-quarter revenue of between $8.7 billion and $9.3 billion, down from earlier projections to Wall Street last month of between $10.1 billion to $10.9 billion. Intel's Q4 revenue last year was $10.7 billion. The firm's spinners noted the forecast cuts were due to " significantly weaker than expected demand in all geographies and market segments ".

It isn't just Intel's revenues which seem to be taking a dive, the firm's gross profit margin is also taking a hit, now predicted at about 55 per cent of revenue, down from about 59 per cent.