NEW YORK ( TheStreet) -- Intel ( INTC) lowered its third-quarter revenue outlook before market open on Friday as the chip giant continues to feel the effects of a tough economic environment.

The tech bellwether said it now expects third-quarter sales between $12.9 billion and $13.5 billion, well below its prior forecast of $13.8 billion to $14.8 billion.

In a statement, Intel cited "weaker than expected demand in a challenging macroeconomic environment" for its guidance change.

"Relative to the prior forecast, the company is seeing customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory; softness in the enterprise PC market segment; and slowing emerging market demand," it explained. The company's data center business, however, is meeting expectations.

The Santa Clara, Calif.-based company also narrowed its gross margin outlook on Friday. Intel now expects a third-quarter gross margin between 61% and 63%, compared to its prior forecast of 61% to 65%.

Expectations for R&D and MG&A (merger and acquisition) spending, however, are unchanged. Full-year capital spending, though, is expected to be below the low-end of Intel's prior guidance of $12.1 billion to 12.9 billion.

The No. 1 chipmaker, which is seen as a barometer for the overall tech sector, also cited a challenging macroeconomic environment when it reported its second-quarter results in July. The AMD ( AMD) rival comfortably beat Wall Street's profit forecast, but lowered its full-year guidance.

Intel's shares slipped 2.53% to $24.46 before market open on Friday.

The company's annual Intel Developer Forum kicks off in San Francisco next week, which TheStreet will be attending.

--Written by James Rogers in New York.

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