USA: Presenting Converge's Market Intelligence Report, August 2009.
As the summer heats up, the spot market remains cool with no sign of the big shortages that headlined the news in previous years. At this time, we don’t anticipate any late surge. Instead, a spread of demand pockets contributed to respectable CPU demand in July. Currently, we are tracking the following trends:
OEM TJ models see a sluggish changeover
Demand for mid- and low-range mobile CPUs is continuing for end-of-life technology, while newer models lurk in the shadows. We’ve been anticipating the Intel T4300, T6600 and T3000 chip series to reach mainstream demand in early summer; however, many OEM builders prefer the end-of-life models, as the supply of new parts and customer interest is slow to develop.
At this point in the season, following the Computex event, we would expect to see a big rise in interest surrounding newer models. Relatively flat demand, a large price gap to the new models and a limited supply has conspired to a market reluctant to make a significant move. The T4200 for example is selling at $70+, while the new model T4300 is in short supply, more expensive at $80+ and only boasting a 0.1 GHz faster speed, which is not exciting consumers.
Elsewhere, Atom CPUs are slowly creeping into the spot market in bundle deals complete with chipsets and motherboards.
Xeon savings a worthy quest
Large cost-saving requirements for Intel Xeon 5140, 5160 and E5420 swept the market in July as customers were actively searching for savings. While a cost reduction of 6 percent on desktop parts is a good find, for Xeon processors it is not unusual to find 20 percent+ price differentials from region to region.
The supply is uncertain, and volumes are less than mobile or desktop requirements. However, the size of the savings opportunity makes it the best value in this market.
Old favorites headline desktop market
The Intel E8400, the popular desktop CPU, has been highlighted in previous editions of Market Insights over the past year. It is not yet scheduled for a price drop, meaning demand remains steady. However, the market price has varied wildly during the summer, swinging from a classic 8 percent cost-saving part to shortage and back again.
The Intel Q6600 and E4600 processors lead the list of parts in demand and as a result are commanding a premium price. Demand in the spot market for high-end Core I7 desktop processors remains low, resulting in minimal cost-saving opportunities. Converge will be monitoring demand patterns for high-end CPUs and the low-end Atom mobiles in the coming months.
Showing posts with label CPU update. Show all posts
Showing posts with label CPU update. Show all posts
Thursday, 13 August 2009
Friday, 17 July 2009
CPU update: Xeons and AMD Opterons are drivers for cost savings
Shortages take a vacation
USA: According to Converge Market Insights, in the past, the summer months have brought not only warm weather, but shortages in the CPU market. And July has always been a busy month in the spot market.
Last year, the big Intel end-of-life desktop shortage rolled in around June and kept the market busy until the pre-Christmas season. From the Pentium 4 630s to the 925, and the E6550 to the E8400, desktop parts arriving or leaving the market drive market volume demand.
This year, there are no hiccups to report in the Intel supply chain. The E8400 is still being supported though Q4, and there’s barely a shortage whisper on other desktop parts.
It appears that Intel has confronted the trend for the time being. Currently, we’re watching the E7400-500 and E5200-300 model switch for possible signs of a shortage.
Xeons drive reductions
Xeons and AMD Opterons are the current drivers this summer for cost-saving opportunities. This is the direct result of relatively higher pricing, a long shelf life allowing excess pockets to build and many price discrepancies across regions.
The spot market is abundant, with many cost-saving opportunities in server chips, which is an unexpected situation given stalling consumer demand.
USA: According to Converge Market Insights, in the past, the summer months have brought not only warm weather, but shortages in the CPU market. And July has always been a busy month in the spot market.
Last year, the big Intel end-of-life desktop shortage rolled in around June and kept the market busy until the pre-Christmas season. From the Pentium 4 630s to the 925, and the E6550 to the E8400, desktop parts arriving or leaving the market drive market volume demand.
This year, there are no hiccups to report in the Intel supply chain. The E8400 is still being supported though Q4, and there’s barely a shortage whisper on other desktop parts.
It appears that Intel has confronted the trend for the time being. Currently, we’re watching the E7400-500 and E5200-300 model switch for possible signs of a shortage.
Xeons drive reductions
Xeons and AMD Opterons are the current drivers this summer for cost-saving opportunities. This is the direct result of relatively higher pricing, a long shelf life allowing excess pockets to build and many price discrepancies across regions.
The spot market is abundant, with many cost-saving opportunities in server chips, which is an unexpected situation given stalling consumer demand.
Wednesday, 17 June 2009
CPU update: Intel Atom fails to take off in the spot market
USA: According to Converge Market Insights, May was a steady month in CPU activity, with a focus toward new product launches at the Computex show in Taipei in early June.
For this edition of Market Insights, this report will focus on two differing developments in the mobile and desktop markets: the failure of the tiny Atom to take off, and the surprise resurgence of the old heavyweight desktop processor.
The Intel Atom
As the first generation of Atom processors slides into end of life, it is worth looking at its impact on the spot market. These low-cost, low-speed chips for netbook and other mobile applications arrived on the market with much fanfare but have not yet caught on to be actively traded in the open market.
Intel estimated that the Atom accounted for approximately 20 percent of its mobile processor shipments in Q1 09, while spot market contributions were at a modest 6-7 percent.
The margins from the low-cost chips, combined with the frequent need to bundle with a chipset or small board, mean that the parts are not simple to move. It is interesting to note that as of yet, AMD has no direct competing technology to the Atom. Perhaps, we will see a rise in demand as main models, such as the N270, are replaced by the N450.
Boxing clever
The month of May saw a reemergence of demand for the desktop CPU at retail. In the past, the high cost of shipping retail desktops made them an uneconomical option, as the boxes contain a heavy cooling device that dramatically raises shipping costs while eroding margins.
With the introduction of inexpensive Intel cooling fans in the spot market, Converge has been able to bundle the fans and CPUs together in kits complete with full three year warranty providing a cost-effective solution to box builders. This has resulted in a resurgence in desktop demand in the spot market, as market cost variances are once again favorable.
For this edition of Market Insights, this report will focus on two differing developments in the mobile and desktop markets: the failure of the tiny Atom to take off, and the surprise resurgence of the old heavyweight desktop processor.
The Intel Atom
As the first generation of Atom processors slides into end of life, it is worth looking at its impact on the spot market. These low-cost, low-speed chips for netbook and other mobile applications arrived on the market with much fanfare but have not yet caught on to be actively traded in the open market.
Intel estimated that the Atom accounted for approximately 20 percent of its mobile processor shipments in Q1 09, while spot market contributions were at a modest 6-7 percent.
The margins from the low-cost chips, combined with the frequent need to bundle with a chipset or small board, mean that the parts are not simple to move. It is interesting to note that as of yet, AMD has no direct competing technology to the Atom. Perhaps, we will see a rise in demand as main models, such as the N270, are replaced by the N450.
Boxing clever
The month of May saw a reemergence of demand for the desktop CPU at retail. In the past, the high cost of shipping retail desktops made them an uneconomical option, as the boxes contain a heavy cooling device that dramatically raises shipping costs while eroding margins.
With the introduction of inexpensive Intel cooling fans in the spot market, Converge has been able to bundle the fans and CPUs together in kits complete with full three year warranty providing a cost-effective solution to box builders. This has resulted in a resurgence in desktop demand in the spot market, as market cost variances are once again favorable.
Wednesday, 13 May 2009
CPU update: Mobile shortages drive demand, while Intel Atom eludes open market
USA: According to Converge Market Insights, the CPU market in April, if viewed against previous years, could be described as being steady with a seasonal calm in demand. However, Converge remains optimistic based on signs of a potential recovery and upswing in May and is encouraged by new opportunities that exist in the marketplace.
Mobile shortages drive demand
Over the past several months, Converge has been tracking a clustering of demand around lower-priced processors. A shortage of mobile processors in the lower segment of budget CPUs resulted in increased demand for these processors on the spot market in recent weeks. T2390 and T3200 all the way up to T6600 models remain in short supply and high demand.
Rumors return of a tightening of desktop processors
Several slightly older desktop microprocessors are rumored to become in short supply in May. This list includes E2200, E2220, E5200, E7400 and E8400 processors. The E7400 and E8400, at the time of writing of this update, remain the best-selling parts at a cost savings; however, we anticipate a tightening of supply heading into the summer months, driven by the traditional phasing out of older technology.
In addition, due to a history over the past four summers of a burst of excess and obsolete shortage desktop activity, it is advisable to monitor this space carefully. Converge will monitor and report in future Market Insights updates.
Atoms are puzzling
The spot market has not fully cracked the potential of the Intel Atom market. To date, demand is present; however, a surplus of large-quantity inexpensive excess has yet to emerge. We anticipate more customers will turn to the Netbook models, as it is sure to become an increasingly important open-market segment. For the short term, demand is maintaining pricing levels in the spot market.
AMD rides again
AMD parts remain in demand in the spot market, especially for the mobile processor. In the past the Athlons, Semprons and Opterons provided good savings opportunities as AMD provided wildly differing prices, not only by region or country, but also by customer. The market has long since settled, but we do see opportunities existing in the new mobile range of Q, R and Z parts.
Mobile shortages drive demand
Over the past several months, Converge has been tracking a clustering of demand around lower-priced processors. A shortage of mobile processors in the lower segment of budget CPUs resulted in increased demand for these processors on the spot market in recent weeks. T2390 and T3200 all the way up to T6600 models remain in short supply and high demand.
Rumors return of a tightening of desktop processors
Several slightly older desktop microprocessors are rumored to become in short supply in May. This list includes E2200, E2220, E5200, E7400 and E8400 processors. The E7400 and E8400, at the time of writing of this update, remain the best-selling parts at a cost savings; however, we anticipate a tightening of supply heading into the summer months, driven by the traditional phasing out of older technology.
In addition, due to a history over the past four summers of a burst of excess and obsolete shortage desktop activity, it is advisable to monitor this space carefully. Converge will monitor and report in future Market Insights updates.
Atoms are puzzling
The spot market has not fully cracked the potential of the Intel Atom market. To date, demand is present; however, a surplus of large-quantity inexpensive excess has yet to emerge. We anticipate more customers will turn to the Netbook models, as it is sure to become an increasingly important open-market segment. For the short term, demand is maintaining pricing levels in the spot market.
AMD rides again
AMD parts remain in demand in the spot market, especially for the mobile processor. In the past the Athlons, Semprons and Opterons provided good savings opportunities as AMD provided wildly differing prices, not only by region or country, but also by customer. The market has long since settled, but we do see opportunities existing in the new mobile range of Q, R and Z parts.
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