Intel warns of impending CPU shortages, but says it won’t raise prices - penningtonjusnis

Intel executives suppose that the company will embody unable to supply enough processors to meet PC demand, as the factors energetic current crisp shortages dissemble it, to a fault. But surprisingly there's some saintlike tidings as intimately. Intel said it leave probably eat the resulting addition in prices, at the least where PC companies are afraid.

"We stay in a highly affected surround where we are unable to fully supply customer demand," same George Davis, Intel's chief financial officer, American Samoa part of a SeekingAlpha transcript of Intel's second quarter earnings call. In that call, the ship's company admitted that it tush't get materials—specifically substratum—to make enough chips to keep out footstep.

"In [Intel's Client Computing Group], we continue to ascertain very strong involve for our client products and expect [total available market] growth to continue." Davis said. "Even so, persistent manufacture-full component in substrate shortages are expected to lower CCG revenues sequentially. We expect supply shortages to go forward for several quarters, but appear to be particularly acute for clients in Q3."

Worldwide chip shortages have deliberate everything from smartphones to graphics cards to cars, with critical components holding back output of finished goods. Intel has weather-beaten its own central processor supply shortages finished the yore several years, though they've been generally self-driven as the companion shifted from 14nm to 10nm physical process technologies. Now Intel is cautionary that the upcoming shortages are out of its hands.

In reaction to a question from an analyst, even so, Intel chief Pat Gelsinger same that Intel ISN't prepared to offer on high prices to its customers. "We don't see a great deal of movement on ASP [normal asking price] in the first uncomplete to second base half in either of those businesses," Gelsinger said. "It really is nigh supply limitations. And as George [Davis] commented, we're not casual done all of our provision restraint price increases that we're seeing from our supply chain. We really see IT as an chance to be investing with our customers, rebuilding their trust and partnership for the in store."

The question, course, is whether prices will rise unheeding simply because of scheme factors. Intel may non be charging higher prices to the hardware companies (like Dell, Lenovo, and HP) that it serves as customers, but retailers selling laptops and DIY processors may not be thusly sort. Unfortunately, as we've seen in the market for graphics cards, scarcity simply means high prices, nobelium matter what the prescribed Leontyne Price of the plug-in is.

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As PCWorld's senior editor, Mark focuses on Microsoft news program and chip applied science, among other beats. He has formerly written for PCMag, BYTE, Slashdot, eWEEK, and ReadWrite.