August 2, 2007

CPU prices are still at a premium

Premiums continue to be paid by the vast majority of mainstream desktop PC builders on at least a half dozen Intel low cost processors. For the past several weeks, processor number 925 is the most demanded CPU in the independent or open market and there appears to be no end in sight to this trend. Trading at 15% above the $70 standard, product doesn’t remain for sale for long before it is swept up and headed towards assembly lines. We expect the 925 to remain in short supply throughout the upcoming 90 days, along with the 935 and the 3.4 GB in the same stack. The 600-series continues to be in great demand and limited availabilities are being found. The 3 GB 631 and 3.2 GB 641 show the strongest demand from our global customer base at this point and speculative buys on either have been and will continue to pan out for the next quarter at least. On many Intel desktop processors currently, a good strategy is to place blanket purchase orders and at least know you are next in line when and if product is confirmed.

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