Intel's financial results will fall short of projections as a result of sliding market share and weaker than expected demand for its products, the company has warned.

The chipmaker had anticipated sales of $9.1bn to $9.7bn for the first quarter of 2006, but has now lowered the projections to $8.7bn to $9.1bn. The disappointing sales will also cause a drop in profit margin.

The timing is inauspicious for Intel as the firm prepares to drum up support for new technologies at the Intel Developer Forum in San Francisco which begins tomorrow. 

Intel is scheduled to release its financial results on 19 April and has said that it will not provide any updates until that time.