Nomura Equity Research, an investment broker, recons that factors other
than, and more significant than hard disk drive (HDD) shortage caused
due to the recent Thailand floods affecting HDD manufacturing, are
behind Intel's reduced Q4 forecast.
Earlier this week, Intel shaved off close to a billion dollars from its
Q4 Revenue Guidance, leveling the blame on HDD shortages, as HDD is a
near-indispensable component in manufacture and assembly of a vast
majority of PCs. Nomura Equity Research thinks "weak sell-through" is
that other factor.
Nomura Equity Research said "HDD shortages are a concern, but we think
weak sell-through is also contributing to the $1 billion shortfall." It
continues, "We see softness in China, continued demand for ARM-based
more power-efficient devices, and low volumes for ultrabooks." Intel is
clearly feeling the heat with depleting demand for Wintels, as entire PC
form-factors are challenged by leaner, fitter computing devices such as
tablets, netbooks, and smartphones driven by ARM processors are growing
in demand.
Nomura adds "We would not be surprised to see below-seasonal growth in
Q1 and Q2 given lack of PC catalysts (Windows 8 likely Q3 event),
increasing ASP pressure, and slowing China and Europe." It concludes its
report by cutting its forecast for Intel sales revenue in 2012 by $3
billion to $53.4 billion, a fall from its estimate for Intel's 2011
sales revenue of $53.8 billion.
Source: EETimes
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