Intel CPU Shortages To Worsen in Q2 2019: Research

Shortages of Intel's CPUs are expected to worsen in the second quarter compared to the first as demand for Chromebooks, which are mostly equipped with Intel's entry-level processors, enters the high period, according to Digitimes Research. From the report: Digitimes Research expects Intel CPUs' supply gap to shrink to 2-3% in the first quarter with Core i3 taking over Core i5 as the series hit hardest by shortages. The shortages started in August 2018 with major brands including Hewlett-Packard (HP), Dell and Lenovo all experiencing supply gaps of over 5% at their worst moment. Although most market watchers originally believed that the shortages would gradually ease after vendors completed their inventory preparations for the year-end holidays, the supply gap in the fourth quarter of 2018 still stayed at the same level as that in the third as HP launched a second wave of CPU inventory buildup during the last quarter of the year, prompting other vendors to follow suit. Taiwan-based vendors were underprepared and saw their supply gaps expand from a single digit percentage previously to over 10% in the fourth quarter. With all the impacts, the notebook market continued suffering a 4-5% supply gap in the fourth quarter of 2018.

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