Fewer companies have upgraded their personal computers owing to which Intel Corp has sliced almost $1 billion from its first-quarter revenue forecast. Intel Corp.'s shares declined by more than 5% after the lower-than-expected revenue guidance from the chipmaker.

Less number of companies replaced desktop computers that were running on outdated Microsoft operating systems, which led to weak demand for its chips. Intel said that it is difficult challenging macroeconomic and currency conditions, especially in Europe.

Topeka Capital Markets analyst Suji De Silva said that the macroeconomic conditions are not supportive enough for people to upgrade their personal computers the way they generally would. On March 12, Intel said that its expected first-quarter revenue of $12.8 billion, plus or minus $300 million, around 7% lower than its earlier prediction of 13.7 billion, plus or minus $500 million.

Intel is known for chips used in computers. As experts, in comparison to its rivals like Qualcomm Inc., Intel has lacked in adjusting to the changing trends like increasing popularity of smartphones in recent years.

Last April, when Microsoft Corp announced it is ending its support for its Windows XP operating system, Intel expected a jump in demand from small- and medium-sized businesses. However, the demand remained at the same level.

Summit Research analyst Srini Sundararajan said that thing of businesses and consumers is changing. Now they are taking the approach of 'if it ain't broke, don't fix it'. BlueFin Research Partners said that 75 million to 76 million personal computers will be shipped worldwide in the first quarter, which is considered to be a decline of 8 to 9% from the last quarter.

Intel is trying to overcome the impact of slower PC upgrades by making chips for devices like '2-in-1s'. They function as both laptop and tablet.