Friday, November 16th 2018
Intel Cutting Retail Processor Supply for Holiday 2018
Prices of retail packages of Intel Core desktop processors could continue to rise over Q4-2018, as the company has reportedly cut their supply, in favor of tray/reel shipments to OEMs. This could mean DIY favorites such as the Core i5-8400, the i5-8600K, i5-9600K, or even Core i7 models such as the i7-8700K, i7-9700K, and the flagship i9-9900K could be severely in short supply, or heavily marked up wherever available. Intel recently devised a strategy to increase its Core processor volumes by pumping in an additional $1 billion to its usually-$15 billion capital expenditure, to fire up small-scale manufacturing facilities around the world, to augment its bigger fabs located in Malaysia and Vietnam.
Sites like Mexico, Israel, and Ireland are beneficiaries of this move, and are being expanded. Much of Intel's efforts appear to be focused on making sure notebook and pre-built PC manufacturers aren't starved of processor inventory. The DIY retail channel, which consists of boxed processors, will foot the bill for this move. A good example of understocked retail channel would be the $499 Core i9-9900K processor being sold for upwards of $900 in some online stores. AMD is in an enviable position to fill the void, comments PCGamesN. Prices of its Ryzen desktop processor PIBs are either flat, or marginally cut; and socket AM4 motherboards are generally cheaper than LGA1151 ones.
Sources:
PCGamesN, DigiTimes
Sites like Mexico, Israel, and Ireland are beneficiaries of this move, and are being expanded. Much of Intel's efforts appear to be focused on making sure notebook and pre-built PC manufacturers aren't starved of processor inventory. The DIY retail channel, which consists of boxed processors, will foot the bill for this move. A good example of understocked retail channel would be the $499 Core i9-9900K processor being sold for upwards of $900 in some online stores. AMD is in an enviable position to fill the void, comments PCGamesN. Prices of its Ryzen desktop processor PIBs are either flat, or marginally cut; and socket AM4 motherboards are generally cheaper than LGA1151 ones.
106 Comments on Intel Cutting Retail Processor Supply for Holiday 2018
Intel, Nvidia, don't mind me ... continue like that you are motivating me.... :laugh:
S stands for supply. D stands for demand. Q for quantity. P for price.
Intel has decreased supply as represented with the S line moving left and becoming S2. Quantity demanded has decreased from Q1 to Q2. Price has increased from P1 to P2.
But you are correct that this is the opposite of profit by volume strategy.
The demand is at its highest in the first half or third of its time in the market, then as word of mouth spreads the demand grows (or declines in case of bad products) especially after the initial launch.
There are very bright spots for AMD in the server market - Naples is good, Rome is looking even better, and the announcement of a 10,000-CPU supercomputer built on Rome is a massive win - but it's still too early to say if they're going to be able to gain enough market share there to make them a viable contender in the long term. 100% correct. Intel maybe be stupid and greedy, but they aren't stupid and greedy enough to try the same thing that got them burned so badly back in the P4/Athlon64 days.
www.nytimes.com/2017/09/06/business/intel-eu-antitrust-fine.html
In terms of bottom of the barrel corporations, in the tech sector, I'll put Intel right in the top 10. Elsewhere they got a slap on the wrist at best, considering the lost sales (for AMD) Intel not only made bank but also made sure that AMD could never get traction with other enterprises.
fortune.com/2017/09/06/intel-eu-antitrust-fine-cjeu/
Nope EU launched a probe independently & the EU fines had nothing to do with the AMD settlement in the US. In fact pretty much everywhere around the world Intel got fined. The fact that Intel haven't paid a dime to the EU says everything there needs to be said about them.
en.wikipedia.org/wiki/Advanced_Micro_Devices,_Inc._v._Intel_Corp.
The US DoJ & federal courts have much more power to punish corporations for abusing monopoly or cheating customers, as compared to the EU or any other major industrial nation, perhaps with the exception of China which is down to the power wielded by the CCP.
www.engadget.com/2006/07/24/amd-buying-ati-for-5-4-billion/?guccounter=1
What this means is that Intel basically got off a technicality & no firm would settle out of court, paying $1.25 billion, if they weren't guilty!
fortune.com/2014/06/12/eus-top-court-confirms-1-4-billion-fine-for-intel/ - 2014 when the EU fined Intel $1.something billion
fortune.com/2017/09/06/intel-eu-antitrust-fine-cjeu/ - 2017 Intel's appeal so to say
I'm not saying that they're not dirty, because they are, but sadly until a final and irrevocable decision is given they are not to pay a dime.
Intel is currently transitioning it's chip packaging factories from China to Vietnam and this is apparently a huge task that has turned out to be more complex than they initially expected. They seemingly closed down a little bit too soon in China and this is why we're now seeing a lack of CPUs.