Thursday, November 28th 2019
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Dell Calls Out Intel for CPU Shortages Affecting its 2019 Full Year Revenue Forecast
PC major Dell in its quarterly results call blamed Intel for cuts in its revenue forecast for 2019 (full year) sales. "Intel CPU shortages have worsened qtr-over-qtr, impacting our commercial PC and premium consumer PC Q4 forecasted shipments," said Dell COO Jeffrey Clarke. Intel's CPU shortages are caused due to demand in the PC and server markets significantly outpacing supply, and not because Intel is supplying below its capacity. The company increased its capex toward manufacturer by $1 billion YoY, retrofitting its manufacturing facilities to make 14 nm processors, all while juggling resources to execute its 10 nm rollout for high-volume mobile and high-margin server processors.
The company hasn't launched 10 nm desktop or HEDT processors, yet, and is reportedly preparing yet another 14 nm line of processors for these platforms, codenamed "Comet Lake." This microarchitecture has also seen a mobile rollout for mainstream mobile form-factors, while Intel focused 10 nm "Ice Lake" for ultraportables and ultra low-power form-factors. Intel executive VP for sales Michelle Johnston Holthaus recently wrote a letter to its customers (primarily companies like Dell,) informing them that despite their best efforts, demand continues to beat supply, and that they hadn't managed to solve their supply issues.
Source:
Reuters
The company hasn't launched 10 nm desktop or HEDT processors, yet, and is reportedly preparing yet another 14 nm line of processors for these platforms, codenamed "Comet Lake." This microarchitecture has also seen a mobile rollout for mainstream mobile form-factors, while Intel focused 10 nm "Ice Lake" for ultraportables and ultra low-power form-factors. Intel executive VP for sales Michelle Johnston Holthaus recently wrote a letter to its customers (primarily companies like Dell,) informing them that despite their best efforts, demand continues to beat supply, and that they hadn't managed to solve their supply issues.
28 Comments on Dell Calls Out Intel for CPU Shortages Affecting its 2019 Full Year Revenue Forecast
But no, there is no hard evidence of bribes. Just as there is no hard evidence vendors won't go AMD if supply does not pick up.
"Performance advantages in certain applications"
There aren't many apps Intel still wins in and that's before you consider the higher TCO of Intel. I'd put the number of companies with Intel only optimized software at less then 10% marketshare.
I wouldn't call it bribery without evidence but it certainly is odd that a company is taking a loss in sales by their own choice. That same company just so happens to have been convicted and paid a fine in the past as well. Dell certainly possess the appropriate Mens Rea to commit such an act.
Problems should be over next year. All 10nm plants will achieve full potential, while Samsung/TSMC will take some of the load.
Lets hope they've learned something for the 7nm transition...
Major business for intel is Microsoft surface and performance laptops for offices.. AMD is a bit slow on this side of things.. hope that changes in 2020..
For my personal use, I am waiting for past 6months hoping 4000series will have a 6/12 cpu or more powerful one on 7nm.. I wanted to buy G7 but it’s only available with 9750H or 8750h or 8300H or 9300H
Business PC sales are stable (because office worker needs a PC - that's it).
Server sales are up in long term. Try to remember these are not DIY desktops we're talking about. It's not about "diversifying supplies".
You have to design a PC for each platform. They all cost.
Intel has 90% of the market, so it's pretty obvious that OEMs focus on Intel's CPUs.
And these shortages are relative. Yes, Intel can't provide enough CPUs for current demand. But they still make many times more than AMD can.
Also, foresight?
Ryzen 1 wasn't interesting. Ryzen 2 was fine. Ryzen 3 is good, but APUs aren't out yet.
Once Zen2 APUs are out (both mobile and desktop), OEMs will likely use them.
Instead of lowering their forecast they should increase it and cover the Intel shortage with more AMD products.
Problems was written on the wall for Intel the day AMD released Ryzen in 2017, Dell stuck their head in the sand listening to Intel's repeat bullshit excuses that they where fixing the problem next quarter over and over again not knowing Intel had nothing for years to come and was only bullshitting them not to start selling AMD.
Well now they are paying the price for their ignorance, i don't trust a company like this so today Dell is on the bottom of my list to buy from unless they happen to give away their stuff for free.
1. Intel was giving Dell money back for all of the CPUs they were selling
2. Dell was getting the money from Intel by having their staff recommend only Intel CPUs
The end of that was a $1 or $2 billion settlement from Intel to AMD to make it go away.
Have evidence? Do you live under a rock? Intel was convicted in court lol! You are kidding I hope? Ryzen 1 not interesting? Ryzen 2 fine? Ryzen 3 "good"? If Ryzen 3 is only "good" then all Intel cpu's must suck as they are trounced in 90% of most any benchmark you can shake a stick at.
Edit -
appuals.com/dell-amd-ryzen-chips-upcoming-laptops/