Is it true that Intel still has massive stockpiles of unsold IB inventory produced?

[VirtualLarry]

Just curious. I read some time ago that they over-produced IB CPUs, and had a whole stockpile of them. Will they be clearing them out at firesale prices, destroying them, what?

 

[Arachnotronic]

Just curious. I read some time ago that they over-produced IB CPUs, and had a whole stockpile of them. Will they be clearing them out at firesale prices, destroying them, what?

The company cut production significantly when things got tough, so no, I don't expect an inventory write off/down. Now utilization is back up, and it's all fresh Haswell + 22nm server stuff.

 

[JQuilty]

Possible they're kept around for warranty replacements to OEM's?

 

[SiliconWars]

I don't think it matters much tbh, as Haswell and Windows 8.1 are not having the desired effect on the PC market.

http://www.digitimes.com/news/a20130628PD214.html

 

[Phynaz]

Intel's inventory dropped by by $585M in the fourth quarter of 2012, and another $400M in the first quarter of 2013.

Their EOQ 1Q13 inventory was $4.36B, actually pretty small considering they were building up Haswell inventory at the time.

 

[zir_blazer]

Don't worry. These always find their way to third world countries computer shops and supermarkets, where you will always find computers that lags one or two generations to whatever is the latest and greatest.

 

[chernobog]

Third world always gets the scrap metal, kinda feel sad for them :/

AMD would have better use of third world than Intel eg Phillipines where AMD is getting more popular and replacing Core 2 Duo's.

 

[Arachnotronic]

Third world always gets the scrap metal, kinda feel sad for them :/

AMD would have better use of third world than Intel eg Phillipines where AMD is getting more popular and replacing Core 2 Duo's.

Don't worry, AMD just dumped their unsellable Llano inventory into India, I believe.

 

[Arachnotronic]

I don't think it matters much tbh, as Haswell and Windows 8.1 are not having the desired effect on the PC market.

http://www.digitimes.com/news/a20130628PD214.html

That's odd...Windows 8.1 isn't available and Haswell Ultrabooks have been scarce.

 

[blackened23]

That's odd...Windows 8.1 isn't available and Haswell Ultrabooks have been scarce.

Agreed, I haven't seen many high end Haswell ultrabooks, of course there's the macbook air which was just released and is selling very well, and the rMBP will also sell like hotcakes i'm sure.

But, on the PC side I haven't really seen ultrabooks yet. I think PC manufacturers are going to tie it in with the release of Windows 8.1, since it will add support for DPI in 2.0 increments as OSX does. (FINALLY) This should mean we'll *finally* get ultrabooks with screen resolutions that aren't terrible.

 

[OBLAMA2009]

that stuff is still sellable. machines with haswell tend to have funkier form factors for both desktop and laptop and so tend to be somewhat more expensive. there will be a market for cheaper ivy bridge machines. plus there arent any dual core haswell out yet

 

[Chiropteran]

I don't think it matters much tbh, as Haswell and Windows 8.1 are not having the desired effect on the PC market.

http://www.digitimes.com/news/a20130628PD214.html

Windows 8.1 hasn't been released yet, how could it have any impact on the market?

 

[dagamer34]

I don't think it matters much tbh, as Haswell and Windows 8.1 are not having the desired effect on the PC market.

http://www.digitimes.com/news/a20130628PD214.html

The source is DigiTimes people. Move along.

 

[Zap]

Just curious. I read some time ago that they over-produced IB CPUs, and had a whole stockpile of them. Will they be clearing them out at firesale prices, destroying them, what?

This question always gets asked about old products whenever a new product becomes available, especially CPUs and GPUs.

Generally speaker, with Intel CPUs the answer is NO, prices don't go down from Intel. Some retailers may close them out, but that is them taking a hit to not be stuck with older stock.

IDK with AMD these days, but in the past some older stock was available at somewhat reduced pricing.

With GPUs, usually availability plummets, so even if pricing goes down your choices may suck.

 

[Subyman]

Price always stays the same from the manu. Someone with a blown older socket chip a few years from now sometimes pays more than the latest and greatest to get a fresh one, especially in the server scene.

 

[Sheep221]

Don't worry. These always find their way to third world countries computer shops and supermarkets, where you will always find computers that lags one or two generations to whatever is the latest and greatest.

Respect if that is sold in third world, across europe and america, many stores keep selling old and overpriced computers and stealing very bad money from not so savvy customers.
I was in worst computer store in entire county where I live and I can tell you they were selling the P4 775 rigs with 512 megs of RAM and 40GB HDD for $300
For that price you will get completely new Celeron/Pentium IVB based PC

 

[VirtualLarry]

Respect if that is sold in third world, across europe and america, many stores keep selling old and overpriced computers and stealing very bad money from not so savvy customers.
I was in worst computer store in entire county where I live and I can tell you they were selling the P4 775 rigs with 512 megs of RAM and 40GB HDD for $300
For that price you will get completely new Celeron/Pentium IVB based PC

Sounds like this place, Computer Renaissance, that sold someone an original Pentium machine, when P4 computers were the current tech.

It would be like me selling someone a P4 computer today. In fact, I mostly gave away most of my single-core machines, and I even gave away a couple of AM2 X2 machines. (In hindsight, I should have kept those and re-sold them instead.)

When you can buy an IB CPU + mobo for under $110, and some RAM for $40-50, it doesn't make sense to invest in old tech.

 

[Sheep221]

Sounds like this place, Computer Renaissance, that sold someone an original Pentium machine, when P4 computers were the current tech.

It would be like me selling someone a P4 computer today. In fact, I mostly gave away most of my single-core machines, and I even gave away a couple of AM2 X2 machines. (In hindsight, I should have kept those and re-sold them instead.)

When you can buy an IB CPU + mobo for under $110, and some RAM for $40-50, it doesn't make sense to invest in old tech.

I bought single core SB celeron out of curiosity, thinking that I will just sell it or throw it to the closet, nope, I was very surprised with performance offered at 15W power draw and It does basically anything, it could be even used for playing some older games and mild photo programs, HD is no problem either.
It found a sweet spot in new office build I got for my mother.

 

[bryanW1995]

This question always gets asked about old products whenever a new product becomes available, especially CPUs and GPUs.

Generally speaker, with Intel CPUs the answer is NO, prices don't go down from Intel. Some retailers may close them out, but that is them taking a hit to not be stuck with older stock.

IDK with AMD these days, but in the past some older stock was available at somewhat reduced pricing.

With GPUs, usually availability plummets, so even if pricing goes down your choices may suck.

This has been my experience with intel CPU's as well. I don't recall ever seeing significant price drops from them. Seems counterintuitive, as many/most other companies drop prices almost from the word go, but with intel's complete control of fabs they are better situated than anybody else in the industry to maintain ironclab control on inventories.

 

[blackened23]

Yes, i've noticed this as well with each new generational release. The prior generation doesn't go down in price. I have to wonder if that is at all related to corporate purchases, as they tend to buy outdated hardware to maintain existing equipment.

 

[wilds]

I kind of appreciate the high prices for older CPU's. It makes me feel good when I'm selling an old piece of tech for high value

 

[Sheep221]

I kind of appreciate the high prices for older CPU's. It makes me feel good when I'm selling an old piece of tech for high value

The problem is that computers are not aging by the time itself but by technological progress, selling something old when newer completely better thing is out for similar price is just ridiculous and money leeching.
I have nothing against using HW for long, I myself am like that, but hey it's price goes down by time and it should stay there.

 

[leper84]

Yeah, look at these winners local to me (granted never actually walked in the store, probably never will)-

http://www.altex.com/PCI-E-Video-Cards-C10861.aspx

VisionTek Radeon HD5870 PCI-Express 1GB GDDR5 Video Card : 900322
Our Price: $624.95

 

[VirtualLarry]

Yeah, look at these winners local to me (granted never actually walked in the store, probably never will)-

http://www.altex.com/PCI-E-Video-Cards-C10861.aspx

If you think that's bad, you've obviously never shopped for a video card at a BestBuy B&M. Last time I knew, they were selling 5450's for $100 or so.

 

[Tsavo]

Sounds like this place, Computer Renaissance, that sold someone an original Pentium machine, when P4 computers were the current tech.

I wonder if CR was/is some small national chain or franchise.

There were a few in AK, and they always had the worst hardware at the highest prices.