14 DAY TRIAL // Recently, it was reported that Intel was being faced with tight supplies of laptop CPUs after Acer placed in high volumes of orders. Now, it seems that the same cannot be said about the Santa Clara-based giant's desktop chip supply. Instead of having to put special effort into making sure that it can meet orders, Intel appears to be shipping more chipsets than chips. Seemingly optimistic about desktop demand, motherboard makers are reportedly ordering 20% more chipsets than processors.
Digitimes reports that, according to its sources, mainboard manufacturers are preparing motherboard components for what they perceive as an imminent desktop demand increase in China. The Chinese desktop market will supposedly “take over Europe and North America to become the largest motherboard market worldwide.”
To make sure that they are prepared for this eventuality, Asustek Computer, Micro-Star International (MSI), ASRock and Gigabyte Technologies are all setting high shipment goals for 2010.
As opposed to these companies, Intel has a more conservative prediction of how the market will evolve. According to the chip and chipset maker, the report claims, desktop demand won't spike. Of course, Intel would actually like to be wrong about this, but placing motherboard orders that exceed CPU orders by 20% might turn out to be less than favorable for motherboard makers and PC vendors.
In the event that demand doesn't rise, they will have to settle for pricing campaigns in order to reduce their inventories. This will lower their profits, while most likely bringing tears of joy to consumers’ eyes, always thrilled to see price reductions.
There are some motherboard players somewhat concerned that Intel may be proven right. As for the company’s plans, it will see how things progress and, in case demand does rise, it will gladly adjust its shipments when necessary.