Technology firm Intel has been forced to slash its revenue forecast for the first quarter by almost $1bn (£0.7bn, €0.9bn) after many businesses failed to upgrade from Windows XP operating systems.

The world's largest computer chip maker had anticipated first quarter revenues of around $13.7bn but following a "lower than expected Windows XP refresh in small and medium business", it has now dropped this to $12.8bn, with the results set to be released on 14 April.

"The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain," a statement from the California-based firm said.

Intel shares fell by almost 5% on the back of the announcement to $30.93, at the time of writing. Shares are down by 10% in total in 2015 but up 34% over the course of the past 12 months. The company added its data centre business is still on course to meet expectations.