If you’ve been holding back on your laptop purchase for the holidays because you know its always nice to unwrap gifts during Christmas, the chances are you might not be able to get the latest models powered by the Intel’s latest processors. The global CPU supplier running on 90% of the worlds PC’s is having supply issues and will not likely be able to solve the problem anytime soon.
In a statement to shareholders and customers, Intel Executive Vice President General Manager Sales and Marketing Michelle Johnston Holthaus has apologised for the shipment delays and reiterated on the challenges they are facing in resolving the matter. A bleak response for the millions of customers and vendors who rely on Intel chipsets for their hardware.
Intel has invested record levels in increasing its 14nm wafer capacity this year and also ramping its 10nm production, in addition to expanding its own manufacturing capability the chipmaker is increasing the use of foundries to enable differentiated manufacturing to produce more CPU products. This allowed the company to increase its second-half PC CPU supply by double digits compared with the first half of this year. However, sustained market growth in 2019 has outpaced the efforts and exceeded third-party forecasts. Intel’s problem stems from the limited supply buffers which mean inventory is always at minimum due to the volatility in demand which has caused the current predicament faced by the company.
Holiday season is usually the peak time for PC shipment, vendors like HP, Lenovo and Acer forecast increase in orders with gaming laptops becoming top picks for this year. But with Intel incurring production issue, it is not clear if the shipment will impact Christmas orders and continue to plague orders when school reopens in 2020.