Intel reports that its profits dropped by 90 percent during the last three months of 08. Previously Intel reported its quarterly profit as $2.3 billion that dropped to $234 million during in the last three months of 08. According to the chip maker, low consumer spending for PCs is the biggest factor in this connection.

Intel is known as the world’s fourth biggest chip maker and the firm has given warning earlier this month about the 23% ($8.2bn) slump in the sales.

Intel has forecast meager $7bn sales for the 1Q of 09. According to some market analysts, because of economic gloom, domestic users have developed a habit of thinking twice before making a purchase of new PC.

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