Intel are experiencing supply constraints on a number of their processors, which is subsequently causing stock issues throughout the channel. Apple, Dell, HP, and Lenovo are among the many brands affected.
The current market situation is comparable to severe component shortages in Q2 of 2018. In an open letter on the topic to partners and customers, Bob Swan, Intel’s CFO and interim CEO at the time said, “The surprising return to PC total addressable market (TAM) growth has put pressure on our factory network. We are prioritising the production of Intel Xeon and Intel Core processors so that collectively we can serve the high-performance segments of the market”. Bob also went on to forewarn, “That said supply is undoubtedly tight, particularly at the entry-level of the PC market.”
Moving forward in to 2020 Intel foresees the end of the drought midway through the financial year. Davis said, “In the second half of the year we would expect to be able to bring both our server products and, most importantly, our PC products back to a more normalised inventory level”.
Executives from PC makers HP Inc. and Lenovo have told CRN in recent weeks that they’ve continued to see shortfalls from Intel that have constrained their growth. Working with clients Galtec has assisted with transitioning end users to equivalent devices utilising the AMD Ryzen chipset where possible. However, with the chain disruption further exacerbated by the outbreak of COVID-19 best practice has been to on board stock where possible held either locally by the end user or within Galtec’s secure warehouse to mitigate the effect of shortages. Proactive action now prevents disruption later, and Galtec are always on-hand to assist with any and all requirements.