Wednesday, May 24, 2006 4:25:41 PM
Re: You know very well that these are downbinned parts. They could most likely run at 3 GHz and be priced at $100 (old Celeron top of the line price), or $70 (new Celeron top of the line price.
Being an off-roadmap product is just one possibility, Joe, but it's far more likely that this is part of the inventory reduction activities that Intel said would be done this quarter. If there is a large OEM like Dell, for example, that has a lot of extra low-bin parts, Intel might scoop these up and resell them to a channel distributor. Of course, once they've already been programmed at the factory, there is no way to reset these chips at a higher frequency to get more margin from them. The only thing to do other than scrapping them is to sell them at ultra-low pricing, and at least salvage what's possible. Given that Intel has already admitted that inventory reduction activities would take place, I don't see why you find this so hard to believe.
Being an off-roadmap product is just one possibility, Joe, but it's far more likely that this is part of the inventory reduction activities that Intel said would be done this quarter. If there is a large OEM like Dell, for example, that has a lot of extra low-bin parts, Intel might scoop these up and resell them to a channel distributor. Of course, once they've already been programmed at the factory, there is no way to reset these chips at a higher frequency to get more margin from them. The only thing to do other than scrapping them is to sell them at ultra-low pricing, and at least salvage what's possible. Given that Intel has already admitted that inventory reduction activities would take place, I don't see why you find this so hard to believe.
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