Dell said that despite an unexpectedly high demand for computers and servers, the company’s fourth-quarter business was in poor shape due to Intel’s more than a year-long CPU shortage. In the end, Dell had to cut its revenue forecast for the fourth quarter. Last week, Intel apologized in an open letter for delayed shipments. Despite a 25% year-on-year increase in 14nm capacity this year, there is still a shortage of supply.
(Image via AnandTech)
In addition, Intel experienced capacity fluctuations and limited inventory buffers in the fourth quarter, which failed to effectively absorb this impact. Dell points out that Intel has not been able to provide enough processors for commercial and high-end customers.
“Intel CPU shortages are worsening quarter by quarter and are having an impact on our q4 expected shipments for commercial and high-end consumer PCs,” said Jeffrey Clarke, the division’s chief operating officer.
It should be noted that while Intel’s supply shortage was bad for system manufacturers, Revenue from Dell’s PC business grew 5% year-on-year to $11.4 billion in the third quarter, while commercial PC sales rose 9 percent to $8.3 billion, and shipments of consumer computers rose 6 percent to $3.1 billion.
Finally, Dell is cautiously predicting Intel’s future CPU availability. The move follows similar concerns expressed earlier this month.