Channel stuffed to hilt with Intel chips

A report claimed that it’s not just Acer that has too many PCs clogging its warehouses.

According to Kitguru, HP has bought way too many Intel processors and has made way too many machines to satisfy demand.

And that means, the site claims, that many are offering “back door” HP inventory at rock bottom prices.

It also means that due to Moore’s Law, those chips are smaller so you get many more on a silicon die.

Kitguru suggests that the channel is stuffed with microprocessors but the sun never sets on Intel fabrication plants. It’s churning them out but the problem is the big PC companies don’t know what to do them.

If the report is true, then that would have an impact on Intel’s earnings. We know the enterprises are at last refreshing their own machines and the chip giant has always been able to keep its gross margins at a level that the PC makers remember only happened in the late 1980s.

Who knows how it will pan out for HP, Kitguru says.