PC makers: Intel CPU shortages are here to stay ... for six months

If it's not one DRAM thing, it's another

Canalys Channels Forum 2018 As Intel battles to get on top of CPU shortages that have plagued its business in recent times, the world's largest computer makers are hunkering down for six months of tight supply.

A surge in Windows 10 PC refreshes, demand from cloud infrastructure builders and Apple, coupled with struggles to produce 10nm silicon has caught Intel short, so to speak.

Talking at the Canalys Channels Forum in Barcelona today, HP CEO Dion Weisler described the situation as "unfortunate when any key component goes into shortage".

"Last year it was DRAM and the year before that we had the fire, and there were battery shortages, and the year before that we had a DRAM shortage," he said.

"There's always something in this industry, at the moment it happens to be chips from Intel, and I think that affects sub scale partners more than it affects larger partners."

Weisler said the shortages will be likely for "the next six months" but added "AMD has got a fantastic portfolio. They are really strong now".

silicon wafer

Intel boss admits chips in short supply, lobs cash into the quagmire


Lenovo COO Gianfranco Lanci said PC vendors with less scale and buying powers will be "suffering more than us".

"It's going to be in my opinion probably for the next six months," he told the audience. "I agree that AMD is going to be a good alternative in terms of performance, it's a good alternative in terms of supply."

Intel's CFO and interim CEO Robert Swan last month wrote a letter to reassure customers that Chipzilla would be able to be able to meet demand, prioritising production of Xeon and Core processors to serve "high-performance segments" of the market.

He admitted, however, that "supply is undoubtedly tight, particularly at the entry-level of the PC market".

With memory prices dropping, Canalys CEO Steve Brazier said that, overall, the price of computer should stay flat – unlike AMD's share price, which has more than doubled this year to over $27.

"This quarter AMD will achieve its highest share of PC sales for more than a decade and probably of servers too," said Brazier. "Intel is short, AMD has a more advanced product line, the market is moving to AMD, and they are going to have an awesome quarter and that's why the share price has gone so high." ®

Similar topics

Broader topics

Other stories you might like

  • Will this be one of the world's first RISC-V laptops?
    A sneak peek at a notebook that could be revealed this year

    Pic As Apple and Qualcomm push for more Arm adoption in the notebook space, we have come across a photo of what could become one of the world's first laptops to use the open-source RISC-V instruction set architecture.

    In an interview with The Register, Calista Redmond, CEO of RISC-V International, signaled we will see a RISC-V laptop revealed sometime this year as the ISA's governing body works to garner more financial and development support from large companies.

    It turns out Philipp Tomsich, chair of RISC-V International's software committee, dangled a photo of what could likely be the laptop in question earlier this month in front of RISC-V Week attendees in Paris.

    Continue reading
  • Did ID.me hoodwink Americans with IRS facial-recognition tech, senators ask
    Biz tells us: Won't someone please think of the ... fraud we've stopped

    Democrat senators want the FTC to investigate "evidence of deceptive statements" made by ID.me regarding the facial-recognition technology it controversially built for Uncle Sam.

    ID.me made headlines this year when the IRS said US taxpayers would have to enroll in the startup's facial-recognition system to access their tax records in the future. After a public backlash, the IRS reconsidered its plans, and said taxpayers could choose non-biometric methods to verify their identity with the agency online.

    Just before the IRS controversy, ID.me said it uses one-to-one face comparisons. "Our one-to-one face match is comparable to taking a selfie to unlock a smartphone. ID.me does not use one-to-many facial recognition, which is more complex and problematic. Further, privacy is core to our mission and we do not sell the personal information of our users," it said in January.

    Continue reading
  • Meet Wizard Spider, the multimillion-dollar gang behind Conti, Ryuk malware
    Russia-linked crime-as-a-service crew is rich, professional – and investing in R&D

    Analysis Wizard Spider, the Russia-linked crew behind high-profile malware Conti, Ryuk and Trickbot, has grown over the past five years into a multimillion-dollar organization that has built a corporate-like operating model, a year-long study has found.

    In a technical report this week, the folks at Prodaft, which has been tracking the cybercrime gang since 2021, outlined its own findings on Wizard Spider, supplemented by info that leaked about the Conti operation in February after the crooks publicly sided with Russia during the illegal invasion of Ukraine.

    What Prodaft found was a gang sitting on assets worth hundreds of millions of dollars funneled from multiple sophisticated malware variants. Wizard Spider, we're told, runs as a business with a complex network of subgroups and teams that target specific types of software, and has associations with other well-known miscreants, including those behind REvil and Qbot (also known as Qakbot or Pinkslipbot).

    Continue reading

Biting the hand that feeds IT © 1998–2022