September 4, 2007

Are CPUs going retro?

The CPU market is experiencing a bit of a time warp. While “retro” remains in vogue, so do the 6XX and 9XX series of Intel desktop processors, which continue to be in demand and in short supply. The 631, 641, 651, 661, 915, 925, and especially 935 and 945 processors are all being sold above direct distributor standard pricing. The heaviest demand shifted upward from the 925 earlier this summer to the 935 and 945, which have not been available in production quantities so far this month. Fortunately, while we expect the market on the 3.2 and 3.4G siblings to remain stable or climb, we have product arriving that was committed to months ago at then-current market prices. We expected the 3G 925 to trade far below today’s standard price of $80; however, demand for the part will be enough to maintain a price premium. As manufacturers migrate completely to the E-series, we expect the market on the trailing edge to fall at least to direct pricing. We also expect open market discounts on current technology to be more substantial. For example, we are currently offering the E4300, E6400, and E6600 below published direct pricing.

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