Intel advises that cheap computer sales may run out during the holidays due to supply shortages
Shoppers usually look forward to cheap PC sales during the holiday season, which would normally boost Intel's Q4 profits. However, Intel expects revenue to remain stagnant during Q4 of this year. This can be accounted for as fewer computers are being developed with Intel processors due to the global chip shortage.
PC manufacturers are also prioritising building expensive systems that generate the most returns. Likewise, Intel's Client Computing Group (CCG) anticipates revenue to remain stationary as PC manufacturers deter from assembling low-end systems. CCG reported that the income derived from processors and chipsets in systems fell by two percent from the previous year.
According to Intel, the elevated demand for high-end computers has been counteracted by a reduced demand for low-end machines as system builders focus their chip supply on higher-end PCs. Moreover, the tech company predicts that holiday shoppers will prefer peripherals such as mice as gifts instead of computers.
However, Intel remains optimistic that the supply of PC parts will incrementally improve during 2022. Intel reassured investors that short-term investments will be worth it in the long run, as the tech company attempts to push five manufacturing nodes in four years to challenge the competition. Soon, Intel will reveal the Alder Lake line of CPUs at the Intel Innovation online conference.