Intel said that the cut is due to its customers "reducing inventory in the supply chain versus the normal growth in third-quarter inventory." There is also "softness in the enterprise PC market segment; and slowing emerging market demand" while the "data center business is meeting expectations."
There is plenty of speculation in what these notes mean in detail, but there are now obvious questions about Intel's ability to ramp up 22 nm Ivy Bridge processor production as well as the implications for the launch of Windows 8. Apparently, PC makers are not are increasing their orders for the launch of the new operating system, or they simply use older hardware to support these new systems. There is also a good chance that the tablet business and the competition from ARM processor makers is an increasing problem for Intel.
Either way, Intel has always been an early indicator of trouble for the entire PC industry and that cannot be good news for AMD. We will get the entire story first hand when Intel reports its Q3 results on October 16.