News Intel Warns of Consumer Chip Shortages for Q3

[Admin]

Shortages of ABF substrates will challenge Intel's client chip supply in Q3.

Intel Warns of Consumer Chip Shortages for Q3 : Read more

 

[peachpuff]

"Intel has to prioritize shipments of its datacenter-oriented Xeon processors both because of long-term contracts and because of margins. "

Margins... got it.

 

[InvalidError]

"Intel has to prioritize shipments of its datacenter-oriented Xeon processors both because of long-term contracts and because of margins. "

Margins... got it.

When you have a production shortage and malleable production lines, shifting capacity towards higher-margin SKUs is the logical thing to do. It is the same reason lower-end GPUs come several months behind higher-end ones or get skipped altogether - there are still no signs of incoming 6500 or 3050 for the desktop a year after the top-end models launched.

 

[lazyabum]

PC chip production is regressing while phone/tablet chip production is progressing. Apple and Qualcomm are showing consumers deserve power while the big three reserve power for the powerful.

 

[DSzymborski]

PC chip production is regressing while phone/tablet chip production is progressing. Apple and Qualcomm are showing consumers deserve power while the big three reserve power for the powerful.

I'm totally sure that Apple and Qualcomm prioritizing the parts of the market that make them the vast majority of their profits is for totally egalitarian reasons.

The equally brave pizza place down the street is showing consumers that they deserve lunch while making zero data center CPUs for those fat cats.

 

[TerryLaze]

When you have a production shortage and malleable production lines, shifting capacity towards higher-margin SKUs is the logical thing to do. It is the same reason lower-end GPUs come several months behind higher-end ones or get skipped altogether - there are still no signs of incoming 6500 or 3050 for the desktop a year after the top-end models launched.

At the current time dcg would need to have twice the margin than what ccg already has just to "break even" and make the same amount of money as the ccg.

Higher margins only make sense if you sell the same-ish amount of product.
Unless the margin for dcg actually is twice than the margin of ccg but even then they would only make as much money and not more.