[News-Hardware.fr]Sudden "shortage" of Pentium G4560

[tamz_msc]

Last May, we underlined the excellent performance of the Pentium G4650, which clearly undermined the existence of the Core i3 range. For some time now, we have noticed that it was often unavailable at dealers, in France as well as on the Rhine.

We learn today that the supply on this reference should be difficult throughout the summer! Intel would have anticipated badly the request on this reference? Or is it an organized shortage in order to restore some appeal to the Core i3? Impossible to say

Source

 

[VirtualLarry]

Is Intel really this bad at supply-chain management? Or are they "manipulating markets", using the G4560 to draw interest, but making the part unavailable, or only available at a greater cost than higher-tier parts, such that people purchase parts higher up on their SKU stack?

I mean, we all know that the only Kaby Lake CPUs worth buying, are the G4560, and the 7700K. That's it. The rest are just "filler parts", mostly for OEM boxes.

 

[Termie]

Latest reports are that Intel is cancelling it due to cannibalizing of Core i3 sales. Not surprising since it was such a great chip, and Intel isn't really into providing fantastic values.

Source: https://www.techpowerup.com/235035/...ng-core-i3-sales-company-effectively-kills-it

At this point, it no longer makes sense to buy the G4560, as the G4600 is just a few dollars more.

 

[Burpo]

Jet has them and if you buy 2 & are new customer you get 15% (up to $20) off your first order!
So $137 buys 2!
https://jet.com/product/detail/27ec...&clickid=61256e4f-72a5-4cf7-a137-235ce34de5b1

 

[John Carmack]

Is Intel really this bad at supply-chain management? Or are they "manipulating markets", using the G4560 to draw interest, but making the part unavailable, or only available at a greater cost than higher-tier parts, such that people purchase parts higher up on their SKU stack?

It's laughable to even ask that question. One just has to look at the market games they've been playing for decades to get the answer.

 

[Phynaz]

Being bought up for mining:

http://techreport.com/news/32225/the-pentium-g4560-is-alive-and-well-says-intel

 

[Arachnotronic]

Being bought up for mining:

http://techreport.com/news/32225/the-pentium-g4560-is-alive-and-well-says-intel

Amazing how a lot of FUD can be avoided by simply contacting the companies in question.

Thanks for the link, Phynaz!

 

[Topweasel]

Yeah. I don't know why I didn't read this title earlier. But a bottom end 2c chip disappearing like this comes down to one simple thing Mining. People need a simple cheap chip to host all of their video cards. This guy is the perfect fit.

 

[IEC]

Yeah. I don't know why I didn't read this title earlier. But a bottom end 2c chip disappearing like this comes down to one simple thing Mining. People need a simple cheap chip to host all of their video cards. This guy is the perfect fit.

G4400 and cheaper chips fit that bill better. There's zero reason to purchase the G4560 for mining.

 

[VirtualLarry]

Being bought up for mining:

http://techreport.com/news/32225/the-pentium-g4560-is-alive-and-well-says-intel

Nope, refuted in the last quote.

If you recall, last time around, people were using AM3/AM3+ boards, and dropping in Sempron 150 single-cores. Mining apparently doesn't need much in the way of cores, or HyperThreading.

That quote backs that up, it links to several mining sites with example builds, and they all use Celerons. Which are plentiful and cheap. Miners just need a CPU to fill the socket and work, they don't need high-performance.

Intel is still suspect.

Edit: And even if I'm wrong, and miners are buying the G4560 for some reason over the Celeron G3950 or whatever - what about Intel's supply chain? Surely, they have the production capacity to handle this demand, so why aren't they filling it?

Again, Intel is strongly suspect, for manipulating the supply of their CPUs, to raise their effective ASP, by making the G4560 "less available" than it would be, if Intel were strictly catering to market forces.

 

[Topweasel]

G4400 and cheaper chips fit that bill better. There's zero reason to purchase the G4560 for mining.

I am guessing the threads are worth the extra $50. It might not need a whole lot of CPU power for mining. But there is threadlock potential with the G4400. I am also guessing the G4560's overall stock numbers are smaller than the G4400, so it wouldn't take as much to use up the inventory.

 

[IEC]

I am guessing the threads are worth the extra $50. It might not need a whole lot of CPU power for mining. But there is threadlock potential with the G4400. I am also guessing the G4560's overall stock numbers are smaller than the G4400, so it wouldn't take as much to use up the inventory.

They aren't worth the extra $$ period. There is zero benefit to using a CPU with higher thread counts as a single core is plenty to run 6 GPUs in a mining rig.

Amazing how a lot of FUD can be avoided by simply contacting the companies in question.

The quote from Intel simply says they are continuing to "offer" the chip. They could be producing 100/month or 100,000/month for all we know. You cannot draw a conclusion as to where the supply is going and how much supply is available per month on the basis of that quote. Same point against OP's editorial.

We continue to offer [the Pentium G4560]. What you have observed on websites are possibly part of a normal demand fluctuation.

It's probably quite simple: There is more demand for the chips for budget rigs than there is supply, because it offers a great value.

 

[dullard]

Again, Intel is strongly suspect, for manipulating the supply of their CPUs, to raise their effective ASP, by making the G4560 "less available" than it would be, if Intel were strictly catering to market forces.

You have it backwards. Intel doesn't go out and try to produce G4560 chips. Instead Intel tries to produce as many 7740X chips as it can. Those that fail get features knocked off again and again until they become G4560 chips. The G4560 are the leftovers that couldn't be sold at higher prices.

Not having enough G4560 chips means that Intel priced it too low for their current production yield. Nothing more, nothing less.

 

[VirtualLarry]

You have it backwards. Intel doesn't go out and try to produce G4560 chips. Instead Intel tries to produce as many 7740X chips as it can.

You mean, i3-7350K.

Unlike AMD, that can't afford / doesn't sell enough volume to justify making multiple core configurations and mask sets, Intel does make a seperate 2-core and 4-core die.

And they can reduce feature sets due to market demand, not just due to mfg yield issues during production.

Or did you likewise believe that AMD still had such poor yield late in the Phenom II era, that they were still stuck with triple-cores, rather than downbinning them due to demand?

 

[John Carmack]

Amazing how a lot of FUD can be avoided by simply contacting the companies in question.

Thanks for the link, Phynaz!

G4560 disappeared from my local dealer sites a while ago and haven't come back. G4600 and G4620 and Celerons seem to be easy to get still.

 

[VirtualLarry]

G4560 disappeared from my local dealer sites a while ago and haven't come back. G4600 and G4620 and Celerons seem to be easy to get still.

That just shows how dead-set Intel is, AGAINST giving their customers "good value" for money.

Edit: What I mean is, if this was purely an issue of increased demand, then we would start to see the other neighboring SKUs in the stack start to rise in price, or have shortages too. (See what is happening with mid-range video cards and mining.)

The fact that this does not, from my observations, seem to be happening, seems to point squarely at Intel intentionally reducing the supply of this one SKU, because it represents such good value-for-money. More than Intel was intending to provide.

 

[dullard]

...

You would have a point, if places like Jet.com (linked above) weren't selling the G4560 for $56.90 each, free shipping, and options to pay less if you do things like use a debit card.

Heck Amazon at $65.11 (as of my post) isn't that much higher. https://www.amazon.com/Intel-Pentiu...&ie=UTF8&qid=1499825784&sr=1-2&keywords=g4560

B&H Photo says limited stock but will get more July 18.

Etc.

 

[richierich1212]

If it's not currently sold at Newegg then I would have to say supplies are limited by Intel. Per Intel ARK the G4560 RCP is $64 while the G4600 RCP is $82.

 

[dark zero]

Let's wait, but here in Peru it jumped from 65 dollars to 71 dollars.

A suspicious move and I can understand them too. Everyone are cautious now.

 

[tamz_msc]

I love these comments trying to play down supply issues in Europe by showing how it's all fine in the US.

 

[Torn Mind]

That just shows how dead-set Intel is, AGAINST giving their customers "good value" for money.

Edit: What I mean is, if this was purely an issue of increased demand, then we would start to see the other neighboring SKUs in the stack start to rise in price, or have shortages too. (See what is happening with mid-range video cards and mining.)

The fact that this does not, from my observations, seem to be happening, seems to point squarely at Intel intentionally reducing the supply of this one SKU, because it represents such good value-for-money. More than Intel was intending to provide.

When you "observe" but lack proper understanding of the numerous variables that cause a change in price, you get posts like this.
Doesn't seem like you bothered to process the actual economics despite using terms such as demand and supply.

Where the demand curve and supply curve of a particular good intersects is the market clearing price. A demand curve shifting to the right while the supply curve is assumed static will result in prices increasing.

However, in this scenario, if one considers the product is just "CPU with Hyperthreading", it is far more likely a matter of "quantity demanded exceeds quantity supplied". Because price has changed for "dual cores with Hyperthreading". Intel has priced a product with that set of features lower than it ever has before. "Traveling down the demand curve" results in a greater quantity demanded at such a price. So much so, that they cannot produce enough. The higher priced dual cores are closer to the equilibirum price, and hence the shortage has not (yet) occured on those products.


Every Kaby Lake dual core chip is conceived in the "mind" as the i3-7350K, but physics and chemistry is far too random and uncontrollable for a 100%, or even 30-40% success rate of turning silicon into an i3-7350K. CPU manufacturers do not want a total loss for the dies that come out, which is why Celerons exist. But at the same time, they won't intentionally gimp higher performing chips that can come out of the manufacturing process. If there was a 7350K that has all cache functional and can overclock like a dream, why would they kill such a chip and turn it into a G4560 by blowing a few fuses? Not happening. It is this balancing act of two different needs, the need to sell every sellable piece of silicon

So, rather than deliberately gimp processors, they just let the shortage happen.

 

[VirtualLarry]

You do know that Jet doesn't actually stock any products, and just drop-ships them from other vendors, oftentimes at a loss, because they're trying to gain market-share against Amazon, right?

So, Jet having them "in stock" at a "lower" price, means essentially nothing.

Chances are, if you order them, they will be delayed a few weeks anyways.

 

[kwalkingcraze]

Is Intel really this bad at supply-chain management? Or are they "manipulating markets", using the G4560 to draw interest, but making the part unavailable, or only available at a greater cost than higher-tier parts, such that people purchase parts higher up on their SKU stack?

Thank goodness with Haswell affordability, I know I have to give up soon. I'm officially exiting the PC building game for the rest of my life. Pentium G4520 could be my last Intel processor, I'm shopping for one now. I don't have any plans to go to AMD Ryzen APUs, so I'm stocking up all the final-edition FM2+ boards as best as I can. Buy boards first, buy CPUs later at 80% off. A10-5800K depreciating down to $25 soon, while Ryzen APU sees a price increase to $250.

 

[VirtualLarry]

But at the same time, they won't intentionally gimp higher performing chips that can come out of the manufacturing process. If there was a 7350K that has all cache functional and can overclock like a dream, why would they kill such a chip and turn it into a G4560 by blowing a few fuses? Not happening.

Baloney. It is well known that AMD down-bins based on market demand. Why wouldn't Intel? And I daresay, Intel's combined parametric and function yield numbers are likely MUCH higher than 30-40%.

 

[VirtualLarry]

So, rather than deliberately gimp processors, they just let the shortage happen.

Are you saying, that Intel is too "proud" to down-bin to meet market demands? That makes no business sense.

Intel's dual-core dies all come off the same assembly line at the fab, they all have the same basic mfg cost (testing costs may differ slightly, depending on bin).

If they're making a profit on a G4560 (which they most certainly are), than rather than make zero profit, on zero sales of the i3-7350K, wouldn't they be better off down-binning them? Or they're just going to have a huge inventory of i3-7350K dies left over, once Coffee Lake hits.