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[Kit]Intel drained PC channel inventory to speed up transition to 'Skylake', Windows 10 - Page 2

post #11 of 16
Quote:
Originally Posted by Defoler View Post

The difference between under shipping and over shipping.
Normal practice is selling as much as you can. So they usually over ship. So their clients get as much as stock as they can and intel sells as much as it can.
Under shipping means vendors will not have all the CPUs they want. They order X and intel ships them half or two thirds of it.

The problem with this is less chips go to market, and so there are less incentives for sales or over stock sales or laptop sales etc etc.
So basically, for the end consumer, this means prices stay up.

I'm not sure it is fully good business, but I guess in order to force skylake in the market, they just starved the broadwell market.

That is not normal practice.

Normal practice is shipping as much as you can sell, if you shipped more than that it's called a mistake.
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post #12 of 16
This reminds me of a comment i made a week ago, which was deleted, about a manufactured shortage.
    
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post #13 of 16
Quote:
Originally Posted by ToTheSun! View Post

This reminds me of a comment i made a week ago, which was deleted, about a manufactured shortage.

There really is no shortage. Just like any manufacturer Intel is taking care of their big accounts first and smaller retail channels later. Think about it this way. They are taking care of dell's and hp's, as well as other oem's first, because those accounts are good for hundreds of thousands of units sold and are a steady stream of revenue. As opposed to shipping units for direct to consumer sales, which are good for tens of thousands units sold. You see this from any large manufacturer on a consistent basis. It's just good business.
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post #14 of 16
Quote:
Originally Posted by Defoler View Post

The difference between under shipping and over shipping.
Normal practice is selling as much as you can. So they usually over ship. So their clients get as much as stock as they can and intel sells as much as it can.
Under shipping means vendors will not have all the CPUs they want. They order X and intel ships them half or two thirds of it.

The problem with this is less chips go to market, and so there are less incentives for sales or over stock sales or laptop sales etc etc.
So basically, for the end consumer, this means prices stay up.

I'm not sure it is fully good business, but I guess in order to force skylake in the market, they just starved the broadwell market.

You do know this has been a standard practice for companies in many industries for YEARS right? They reduce shipments as a new product is coming online so as to flush the market. Nothing shady about this, just standard business.
post #15 of 16
Quote:
Originally Posted by axiumone View Post

Quote:
Originally Posted by ToTheSun! View Post

This reminds me of a comment i made a week ago, which was deleted, about a manufactured shortage.

There really is no shortage. Just like any manufacturer Intel is taking care of their big accounts first and smaller retail channels later. Think about it this way. They are taking care of dell's and hp's, as well as other oem's first, because those accounts are good for hundreds of thousands of units sold and are a steady stream of revenue. As opposed to shipping units for direct to consumer sales, which are good for tens of thousands units sold. You see this from any large manufacturer on a consistent basis. It's just good business.
Except that doesn't explain why Europe has had plenty of Skylake CPU's in stock since release day. One of the explanations, somewhat corroborated by the article, is that they wanted to deplete older stock in the NA market.
    
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post #16 of 16
The only reason this is news is because it happened from Intel. It is very rare to look for a released Intel CPU and have it not be in stock. I think their current market superiority allowed then to ramp up production slowly and focus on yields, rather than produce full speed and write off a ton of scrap. If the customer is waiting for a 6600k or 6700k, they are going to wait, rather than go to the competition, in this case. Each shrink is getting more difficult as well, and we are seeing that delay in full scale production.

edit: The optimist in me wants to think that Intel is binning 6600k and 6700k parts better, so they all will achieve 4.5Ghz or better, even at reduced supply.
Edited by Imitationcrabme - 9/26/15 at 8:26am
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