Intel CPU Shortages To Get Worse Through Q2-2019

Supplies of Intel processors will continue to get worse through the second quarter of this year according to DigiTimes. In their research-based report that covers not just the DIY channel, but also the OEM channel focusing on notebook manufacturers, they note that heading into Q2 growth and demand for entry-level products like portable and Chromebooks based on entry-level processors and mainstream notebooks powered by Core i3 processors, which make up the largest demographic of the market.

This report talks heavily about supply-gap, which is the percentage difference between demand and supply. When there is a positive supply-gap that indicates demand exceeding supply and shortages. Notebook vendors like HP, Dell, and Lenovo reported a supply-gap of 5% going into Q3-2018, which definitely impacted their bottom lines. These same companies went through Q4 with a 4-5% supply-gap. Even Apple was not spared from these shortages.

“In the first quarter of 2019, the Core i5 processors featuring Coffee Lake architecture are now having the worst supply shortfall. Some of the demand for Intel’s entry-level Atom processors has turned to AMD, while some others have opted for Core i3 processors. The rising demand for Core i3 processors has also started creating tight supply in the market.”

AMD’s share in worldwide notebook shipments has increased from 9.8% in the first quarter of 2018 to 15.8% in the first quarter of 2019. As more Chromebooks start to use AMD processors this number is expected to rise to 18% in the second quarter of 2018.

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