Intel's inventory undergoes some shrinkage

Subject: Motherboards | March 19, 2013 - 12:55 PM |
Tagged: Intel, qualcomm

The slowdown of PC sales has finally even impacted Intel's supply chain as they reduce the number of chips stocked in inventory.  Even after these years of domination over AMD on the desktop Intel has not been reducing their supplies of chips as they were still selling them at a brisk pace.  It is obvious that has changed over the past year as the lowering sales of PCs and laptops finally lead to Intel reducing the number of chips they have on hand.  They were not the only ones to make this move, with AMD and others also reducing their stocks somewhat.  One area The Register did not report on is GPUs, with the short lifespan of a GPU the stocks of new silicon are also goign to be quite reduced and you should see more discounts on lower end GPUs as resellers try to offload them.  As we have seen before people are still buying electronics, just smaller, more portable devices; Qualcomm's available stock has had to increase by 24% over the same time period.

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"Bean counter iSuppli reckons the major manufacturers acted swiftly to prevent expensive backlogs of baked silicon forming: the average number of days between producing inventory and selling it declined five per cent. The value of the inventory piles also fell five per cent, or $600m, from Q3 to Q4 of 2012, we're told."

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Source: The Register
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