Intel Postpones Lynnfield and P55 Chipset Launches

[AuDioFreaK39]

Intel Postpones Lynnfield and P55 Chipset Launches

due to economic decline

Just recently, Intel has decided to postpone the launch of its 45nm Lynnfield socket LGA1156 mainstream processors as well as its P55 chipset to the end of August or beginning of September. According to several motherboard manufacturers, it may even postpone them even further according to the market situation.



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esquared
Anandtech Senior Moderator

 

[Cookie Monster]

Think the bad economy is hitting them hard, seeing as their Q4 profits were 90% down!

 

[Idontcare]

Wow, that means volume production on 32nm must be getting pushd out too. Likely trying to to reduce capex for 2009 is the main objective here.

There's really no reason to delay the final 45nm products other than to engineer into the timeline a decrease in the forthcoming gap between the final release of 45nm chips and the introduction of 32nm.

And who can blame them. I'd rather see 32nm hitting Newegg 6 months later than read about another 10k layoffs at Intel and Intel has to do something to appease shareholders this year.

(of course reduced capex means the layoffs will be at the tool builders, Applied Materials, ASML, Nikon, etc...no free lunch here...so it is still a sad situation)

edit: although per this dailytech article Intel claims to be pushing full-steam ahead into 32nm...which begs the question why would they bother to release Lynnfield (ever) at 45nm if what Otellini is quoted as saying in the article is really his perception on the matter.

 

[magreen]

Does this have something to do with them seeing that Phenom II doesn't compete above the $250 level? So they don't need to hurry to refresh core i7 into a mid-range product?

 

[Idontcare]

Originally posted by: magreen
Does this have something to do with them seeing that Phenom II doesn't compete above the $250 level? So they don't need to hurry to refresh core i7 into a mid-range product?

Without a doubt this is factored into their decision matrix. We'd be calling them fools if it wasn't the case.

 

[Markfw]

Originally posted by: Cookie Monster
Think the bad economy is hitting them hard, seeing as their Q4 profits were 90% down!

The operative word there is profits. AMD can only see red....

 

[magreen]

Originally posted by: Idontcare

Originally posted by: magreen
Does this have something to do with them seeing that Phenom II doesn't compete above the $250 level? So they don't need to hurry to refresh core i7 into a mid-range product?

Without a doubt this is factored into their decision matrix. We'd be calling them fools if it wasn't the case.

The question is then the relative weights of the factors that went into their decision-making process. Is it that:
a) the reasons stated in the article (bad economy, overstock of chips) are the the main reasons while the PhII is a small factor
or
b) the PhII's performance is the main reason and they're spinning it as because of these things in the article, which while they are factors, are not the primary reasons.
or
c) all factors are about equal
?

 

[RallyMaster]

Economy is usually the bigger reason. Intel isn't really worried about Phenom II much, I would guess.

 

[imported_Scoop]

The text looks pretty solid but I still have to wonder.. source? Intel just said today that 32nm will be released on time yet this?

 

[Denithor]

Originally posted by: Idontcare
edit: although per this dailytech article Intel claims to be pushing full-steam ahead into 32nm...which begs the question why would they bother to release Lynnfield (ever) at 45nm if what Otellini is quoted as saying in the article is really his perception on the matter.

Well, good article I guess. I plan to move from e8400 to Westmere later this year or early next year, whenever it launches. Hopefully a nice TDP reduction will follow the 32nm shift, I have no interest in running a hot chip in my system ever again (will try to stick to 65W and below if possible).

Intel generated approximately $11 billion in cash from operations while paying cash dividends of $3.1 billion. It used $7.1 billion to repurchase 324 million shares of common stock, which helps to boost its EPS figures.

That's not so good, $7.1b/324m = $21.91/share average buying price. Today's price is $13 and change so they haven't gotten a very good ROI. And they haven't managed to prop up their share price with heavy buying, which is often the goal of that kind of investment.

 

[Idontcare]

Originally posted by: Denithor
That's not so good, $7.1b/324m = $21.91/share average buying price. Today's price is $13 and change so they haven't gotten a very good ROI. And they haven't managed to prop up their share price with heavy buying, which is often the goal of that kind of investment.

You could argue that it would be far lower than $13 were it not for Intel buying up 324m excess shares of the float.

 

[GLeeM]

Originally posted by: AuDioFreaK39
Just recently, Intel has decided to postpone the launch of its 45nm Lynnfield socket LGA1156 mainstream processors as well as its P55 chipset to the end of August or beginning of September.

People don't want to buy expensive computer parts because of economic decline.

Everyone is waiting for cheaper mainstream parts to come out before they buy.

So they delay the release of cheaper mainstream parts?

Where am I wrong in thinking that they should release them earlier to entice people to buy sooner?

 

[Idontcare]

Originally posted by: GLeeM

Originally posted by: AuDioFreaK39
Just recently, Intel has decided to postpone the launch of its 45nm Lynnfield socket LGA1156 mainstream processors as well as its P55 chipset to the end of August or beginning of September.

People don't want to buy expensive computer parts because of economic decline.

Everyone is waiting for cheaper mainstream parts to come out before they buy.

So they delay the release of cheaper mainstream parts?

Where am I wrong in thinking that they should release them earlier to entice people to buy sooner?

This is the part of Intel's logic that makes me think it is a cover excuse for delaying volume 32nm (meaning delaying $2B in capex)...why release mainstream 45nm parts on the eve of unveiling your next-gen node which will have all those cost-reduction attributes built-in...unless you aren't really going to unveil it anytime soon.

If they are going to unveil 32nm and push hard on it for sake of its cost-reducing attributes then why bother releasing 45nm parts then, just roll out the 32nm mainstream parts and take advantage of those yummy higher gross margins.

 

[IntelUser2000]

This is the part of Intel's logic that makes me think it is a cover excuse for delaying volume 32nm (meaning delaying $2B in capex)...why release mainstream 45nm parts on the eve of unveiling your next-gen node which will have all those cost-reduction attributes built-in...unless you aren't really going to unveil it anytime soon.

What I feel is the desktop/server mainstream Core i7's are gonna be released on the 45nm process and the mobile versions will really be Westmere based.

 

[Acanthus]

Originally posted by: Cookie Monster
Think the bad economy is hitting them hard, seeing as their Q4 profits were 90% down!

The fact they are even profitable in this climate is an amazing feat in and of itself.

All they have to do is sit on their hands until the economy starts to bounce back.

 

[taltamir]

i am... confused.
So because the economy is not doing well, they are deciding NOT to sell us products that we would otherwise buy?
Do they simply not want our money?