Feeds

Analyst blames Intel for missed chip sales forecast

But is something more fundamental happening?

Internet Security Threat Report 2014

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. ®

Choosing a cloud hosting partner with confidence

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.
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.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.