According to Bobby Burleson, an analyst with Canaccord Genuity, Intel is sharply cutting prices on their Atom and Core processors, due to unexpectedly low sales in Europe and China.
The analyst says the slow sales were thanks to unexpected overall economic weakness in Asia and Europe.
Within his client note, Burleson says Intel has slashed prices on their Atom and Core i3, i5 and i7 processors by up to 50 percent, while also reducing the price of a few chipsets by 15 percent.
The move is to stimulate demand and clear out excess inventory, adds the note.
Says Burleson (via Xbit): "While notebook demand is likely to uptick near term following these cuts. It will be in large part the result of channel fill by Intel’s OEM customers, especially in China. [...]What is of particular concern is the risk of inventory overshoot as the PC supply chain focuses on China in an aggressive effort to offset weakness in the US and stagnation in Europe."
Within his client note, Burleson says Intel has slashed prices on their Atom and Core i3, i5 and i7 processors by up to 50 percent, while also reducing the price of a few chipsets by 15 percent.
The move is to stimulate demand and clear out excess inventory, adds the note.
Says Burleson (via Xbit): "While notebook demand is likely to uptick near term following these cuts. It will be in large part the result of channel fill by Intel’s OEM customers, especially in China. [...]What is of particular concern is the risk of inventory overshoot as the PC supply chain focuses on China in an aggressive effort to offset weakness in the US and stagnation in Europe."
