Replies to post #89192 on Zeev's Turnips Patch-No Politics (ZEEV)

[jdaasoc]

You heard it here first. Intel not going to make numbers if channel is dumping CPU's.

http://www.theinquirer.net/?article=8527

Gulf War II leads to dumping of Intel CPUs

So Intel throttles supply

By INQUIRER staff: Wednesday 26 March 2003, 07:41


A REPORT CLAIMED that lack of demand for Intel CPUs in the US because of Gulf War II had led to large distributors there dumping their stock in the Asian sector of the market.
And that in turn meant the local Asian market, particularly in Taiwan, was badly affected, with the grey market CPUs being discounted at 10 per cent below Intel's official prices.

So, the report continues, Intel has throttled its supply of processors to Taiwan in a bid to return the market to some vestige of normality.

The grey market is a minefield for CPU manufacturers. Big OEMs and mega distributors can buy processors at an advantageous price and then ship quantities around the world, effectively turning them into commodity brokers.

The Economic News said that 2.4GHz and 3GHz Pentium 4s are particularly affected by the dumping, and some traders in Taiwan are even selling processors at a loss.

Other factors affecting the grey market in these parts is what the Economic News - a Taiwanese newspaper - describes as the softening of demand in mainland China. µ