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Intel cuts off DiY desktop processor supply chain deliveries for Q4 2018

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Nov 16, 2018.

  1. Hilbert Hagedoorn

    Hilbert Hagedoorn Don Vito Corleone Staff Member

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  2. RealNC

    RealNC Ancient Guru

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    Frankly, why on earth would anyone choose Intel over AMD right now? And mind you that I'm saying this as someone who has had a PC since 1993 and only use Intel CPUs.

    I can remember two moments since 1993 where it didn't make sense to buy Intel. The first was when AMD released the 64-bit Athlon. The second... is now.

    This shortage will not affect you, since really, AMD is what makes sense to get right now if you're in the market for a new PC.
     
    0LBaID, carnivore and Fox2232 like this.
  3. ruthan

    ruthan Master Guru

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    They are still better for multiboot retro / modern and compatibility stuff.. and for top notch framerate rates in games, if you need anything else AMD is better choice for money, unless you dont have to care about money.. pleas i dont want to read responses that AMD is best for everything or that there is virtualization, both are wrong.
     
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  4. SniperX

    SniperX Member

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    I preordered the 9900K + Z390 some 6 weeks ago....guess I'll wait longer still, no worries :confused: :rolleyes:
    Case will only arrive mid-Dec, this is turning out to be my longest build ever o_O
     
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  5. Petr V

    Petr V Active Member

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    Intel is overpriced now and after another price rise AMD gets better position on seling their CPUs.
     
    TheDeeGee likes this.
  6. D3M1G0D

    D3M1G0D Maha Guru

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    This shouldn't come as a surprise for anybody. They've had supply issues for a while now and it's known that these issues will continue well into 2019. DIY market is relatively small with relatively low margins so it's a good place to sacrifice while they prioritize their high-margin clients.
     
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  7. fantaskarsef

    fantaskarsef Ancient Guru

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    This. Yet I find it hilarious how that whole Intel year of 2018 was... in hindsight, of course, yet I'd have never believed Intel could have issues in the way it does say, 3 years ago.
     
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  8. asturur

    asturur Master Guru

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    asus, gigabyte and company must not be happy.

    In my opinion the first athlon on socket-A and the palomino xp2000+ were still better than comparable intel first gen P3/P4
     
    Killian38 likes this.
  9. asturur

    asturur Master Guru

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    Well i think company have dedicated people to decide what to buy, and they are probably hardware passionate people that started with DIY computers and of which opinion matters for intel.
     
  10. Fox2232

    Fox2232 Ancient Guru

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    I am always surprised on how people "build" their systems.
    When I go to build PC, it is complete and in testing within 2 days from having shopping list.
     
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  11. SniperX

    SniperX Member

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    Sure, if you have all the money in the world and all the components you want are in stock then yes. I want very specific components that are not in stock, so I'll wait ;)
     
  12. schmidtbag

    schmidtbag Ancient Guru

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    I'm confused... doesn't Intel get a lot more money per processor when they sell to DIY'ers? I thought companies such as Dell and HP get a deal where they can get the CPUs for cheaper since they buy in bulk.

    I'd say this is overall good news for AMD - I wouldn't be surprised if most of AMD's sales (for desktop CPUs; not mobile or servers) are done by people building their own PCs.
     
    Kaarme likes this.
  13. Kaarme

    Kaarme Maha Guru

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    How does the market even work? Something like Acer might order a million CPUs by itself. I can't imagine the profit margin there is that extraordinary compared to buying only thousands of CPUs. It's only the quantity that makes a difference, but the price is the manufacturing capacity claimed. A wholesaler alone might order only those thousands, but what would prevent them from forming an cooperative for ordering a huge load of CPUs and then distributing them among themselves? At least in a place like the EU or the USA where there are lots of customers within the same market area. Maybe China and India are the same, I don't know. I'd say one big point here is that the big OEM manufacturers likely have deals with Intel for certain amounts of CPUs, and there's nothing Intel can do about it but ship them. So, the DIY market and lesser manufacturers, even if they wanted to buy, have nothing left to buy, regardless of profit margins.
     
  14. kens30

    kens30 Maha Guru

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  15. H83

    H83 Ancient Guru

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    It´s better to sell millions with small margins than thousands with higher margins, nothing more.
     

  16. Aekold

    Aekold Member

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    As others have mentioned, it's likely that Intel makes more money per-CPU on DIY sales, but the volume is just not there. Maintaining a good relationship with their major partners is also key right now, as AMD ramps up the competition. It was probably the better business move to do it this way.
     
  17. schmidtbag

    schmidtbag Ancient Guru

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    But assuming 100% of the products are sold, that wouldn't be true.
     
  18. H83

    H83 Ancient Guru

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    100% of the products are being sold because big OEMs are buying more than 90% of that production. They are the ones that make the bulk of Intel sales not individual buyers like you and me. If Intel relied solely on DIY sales to sell all their production they would have been out of business a long ago. The same for AMD and other companies.
     
  19. schmidtbag

    schmidtbag Ancient Guru

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    I understand that, but my point is they WILL see a greater net profit from the DIY sales. I'm not sure how much more, but considering how much they care about profits in the first place, I would think that this is a no-brainer to them.
    I guess the real caveat is what their contracts look like with OEMs. If they're expected to provide X amount of CPUs and they can't keep up, it would be a greater financial loss to alter or maybe even cancel the contract than they would earn from the DIYers.

    EDIT:
    Think of it like this:
    You could either sell 100,000 CPUs for $275 a piece, or, you could sell 95,000 CPUs for $275 and 5,000 of the same exact model for $350. In both situations, Intel sells every single model they make, but in the latter they make a lot more money.
     
  20. EspHack

    EspHack Ancient Guru

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    they just have to keep the 60$ pentium and the 9900k available since those two are the only intel cpus that make any sense either if you already got a gpu or a 240hz display
     

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