The problem of chip-set sales haunted Intel in the fourth quarter. As a result, it reported quarterly revenue of $10.2 billion, below most analysts expectations of revenue of $10.5 billion.
Despite putting out record shipments of desktop, notebook and server processors during the fourth quarter, the chip maker said supply problems, something it grappled with throughout 2005, affected its ability to get its desktop chips into PCs.
The interruption, which officials said was only partially eased by third-party chip-set suppliers, caused mismatches that hurt Intels desktop chip shipments.