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Mobo maker flushes P4 chipset through grey market

Prices tumble

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Pentium 4 BO chipsets are falling in price on the gray market in Asia, in response to a big clear-out by a major, unnamed mobo maker, the ever resourceful Digitimes reports (although not resourceful enough to name the company).

It notes that DDR-supporting 845BO (845D) chipsets can be bought in the region for $30, compared with the list price of $36-$37. Until recently the gap between spot price and list price was as little as $2, and the widening differential should make sourcing from the gray market more attractive to smaller mobo makers.

The source of the gray chipsets is a major mobo maker which is cutting stock in response to slowing orders in March, a broker contact of Digitimes says. If this is the case, prices will edge back closer to the list once this inventory is flushed through the system. However, if one big mobo maker has miscalculated on demand, how many more have stumbled?

Digitimes points to the current market slowness, and the lack of "any big ticket orders" landed by Taiwanese mobo makers at CeBIT. ®

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Digitimes: Gray-market 845B0 chipset said to be quoted at below US$30

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