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HP and Lenovo executives say Intel's CPU shortage will continue for 6 more months

8700k prices in the UK have skyrocketed to above £450 since August, which is about 40% higher than usual. (Source: PCPartPicker)
8700k prices in the UK have skyrocketed to above £450 since August, which is about 40% higher than usual. (Source: PCPartPicker)
The industry is one month into a shortage of 14nm CPUs from Intel, and according to HP CEO Dion Weisler and Lenovo COO Gianfranco Lanci this will continue for another 6 months. They have recommended AMD as an alternative thanks to their "good performance" and "fantastic portfolio."

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Earlier this month, 8700k prices peaked at $400 in the US and £450 in the UK, without either having declined or increased significantly since, and Intel's newest 9th generation parts have already gone up in price during the pre-order phase. Intel's CFO and interim CEO Bob Swan promised to invest $1 billion into 14nm production, however according to HP and Lenovo executives, that will not prevent the shortage from lasting for 6 months according to their own estimates.

Speaking in Barcelona at the Canalys Channels Forum, HP CEO Dion Weisler said it is "unfortunate" when any PC component is in short supply, such as the ongoing DRAM shortage which has no end in sight. Weisler said the shortage of Intel CPUs is likely to affect smaller rather than larger partners, and suggested AMD as an alternative, saying:

AMD has got a fantastic portfolio. They are really strong now.

Lenovo COO Gianfranco Lanci expressed similar opinions and agreed with the 6 month timeframe for the shortage. He specified that the lack of purchasing power on the part of smaller PC vendors would be the most limiting factor for acquiring Intel CPUs as they are in such high demand and short supply. The Lenovo executive echoed Dion Weisler, saying:

I agree that AMD is going to be a good alternative in terms of performance, it's a good alternative in terms of supply.

Intel's CPU shortage has contributed to AMD surging in market share for DIY PC hardware and stock price, the sort of which has not been seen in over a decade. With HP and Lenovo outright recommending AMD's products amidst this CPU shortage, AMD could potentially have a very good next 6 months.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 10 > HP and Lenovo executives say Intel's CPU shortage will continue for 6 more months
Matthew Connatser, 2018-10-12 (Update: 2018-10-15)