Intel postpones Celeron cuts as Slot 1 shortage bites

Supply and demand rules as PC makers demand supplies

Chip giant Intel was scheduled to make one of its now very frequent cuts on its low-end Celeron processors this weekend. But PC manufacturers tell us that the company has now postponed such action, and will make the cuts at a later date. That comes as Intel's customers find themselves faced with a shortage on all Slot 1 parts, as revealed here at the end of October. According to one manufacturer, who declined to be named, supply of Intel processors is pretty poor at present. He said that Intel had made some Celeron cuts at the end of last month, but the expected cuts have been postponed because of the supply problem. Intel's introduction of its Coppermine parts has generated huge demand from the market at every level, including PC vendors, distributors and consumers, the manufacturer said. But there is a dearth not only of the new Coppermine parts but also of Slot 1 parts too. That means that Intel is quite happy to generate additional margin while demand for its parts is high. On the other hand, the manufacturer reports that there is a healthy supply of AMD's would-be Pentium III killer, the Athlon K7. ®

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