Feeds

Analyst blames Intel for missed chip sales forecast

But is something more fundamental happening?

Beginner's guide to SSL certificates

Intel's chipset shortage was the reason investment house Handelsbanken Capital Markets' October global chip sales forecast overshot the mark, HCM strategist Bruce Diesen told clients last week.

HCM had predicted sales of $20.3bn for October 2005. According to the Semiconductor Industry Association (SIA), however, the month's total was $20.05bn.

The discrepancy, according to Diesen's report, which comes by way of EE Times, was "probably due to a chipset shortage at Intel" causing a "big slowdown in shipments of notebook PC processors".

The question is, who's to blame? Intel, for not allowing the chip industry to meet HCM's expectations, or HCM, for not accurately forecasting the state of the industry in October?

Intel CFO Andy Bryant said early in September the chip giant had "sold out" of notebook chipsets, some months after the company admitted it was temporarily focusing its production away from low-end chipsets and on to higher-end parts. The industry has abounded with Intel chipset shortage claims since the early summer.

Indeed, Bryant last week said the shortage doesn't look like ending until Q2 2006.

Interestingly, the "slowdown" Diesen mentions also affected AMD's notebook CPU sales, which doesn't require Intel chipsets. Intel's notebook chips shipments are significantly higher than AMD's, but the latter's sales dip suggests there was a decline in demand for laptop processors that goes beyond any difficulty Intel had in shipping chipsets. Notebook vendors' difficulties sourcing Intel-based motherboards doesn't appear to have forced them to turn to AMD-based alternatives to make up the numbers.

Overall, looking at both desktop and notebook segments, rival chipset vendors picked up the slack.

That suggests notebook demand is weak, which is why Intel can afford to allow itself to run out of notebook chipsets in what Diesen describes as "a heck of a time to have a... shortage". In short, Intel may simply be reacting to diminishing demand rather than causing it.

The truth, particularly in such a dynamic market, probably lies somewhere between the two. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.