Intel sees no risk of component shortages

Intel executives said supplies of microprocessors and notebook PC batteries should be sufficient to cope with demand during the year-end holidays

Intel executives moved to assuage concerns that microprocessor and notebook PC battery shortages might spoil Christmas this year, saying supplies should be sufficient.

Global PC market concerns over shortages of microprocessors for desktop PCs and laptops, as well as a massive laptop battery recall, have caused analysts and vendors to worry demand may outstrip supply in the months leading up to the holiday season.

But Intel executives at its developer forum in Taipei said everything will be all right.

"We're at the point now where we don't see the [microprocessor] shortages we were seeing," general manager of Intel's digital enterprise group, Tom Kilroy, said.

He said some places may see "spot shortages" of Core 2 Duo microprocessors, but that there is no general shortage in the market.

General manager of Intel's mobile platform group, Mooly Eden, said he was aware of worries over laptop PC battery shortages but that he has not heard of any actual shortages.

In August, PC vendor Dell announced it would recall and replace millions of laptop computer batteries because of a potential fire hazard. Several companies followed Dell's lead, and the total replacement figure now stands at more than 7.9 million laptop batteries, causing concerns that there wouldn't be enough new batteries available to support the recalls at the same time as strong demand for new notebook PCs.

Around three-quarters of all microprocessors used in PCs globally are made by Intel. Any slump in sales of Intel processors often causes market watchers to lament that the entire PC industry is facing a downturn.

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Dan Nystedt

IDG News Service
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