AMD Short Of Processors For Desktop PCs

[Spinner]

Two anonymous system builders have reportedly said that AMD has sent a letter to some of its partners stating that several of its desktop processor models were in high demand and would continue to be difficult to obtain. One of those system builders said the note specified the Athlon 64 3500, 3800, the dual-core X2 3800 as well as the lower end Sempron 2600 and 2800 as being in tight supply.

An AMD spokeswoman acknowledged shortages in the low-end desktop space but would not comment on specific model numbers. In a statement e-mailed to CRN, the spokeswoman said: "AMD is experiencing unprecedented demand for our desktop processors and this unprecedented demand has depleted our supply of packaging components."
Source: EETimes (http://www.eetimes.com/news/latest/showArticle.jhtml;jsessionid=2R2JDWESPI1NOQSNDBESKHA?articleID=175400070)

[BLuKnight]

It's just like the XBOX 360. It takes a shortage in order for a product to be the hottest item of the season.

[Leonardo]

I disagree, Bluknight. There has long be concern over what would happen to AMD if their products actually did become in demand. It has happened, there is demand, and AMD cannot keep up. It's a catch 22 for them. Fabrication plants cost hundreds of millions dollars each. You can't build new fabs without the money, and you don't have the money without high sales. How do you have high sales without more fabs? I'm sure AMD will do fine, but the short term may be difficult.

[jradmin]

Does this mean prices are gonna go up?!

[Leonardo]

Does this mean prices are gonna go up?! LOL. What, they are inexpensive now? About a year ago, when AMD started gaining traction (well deserved!) in the desktop and server markets, prices DID go up. Demand is such, that they don't have much incentive to lower prices. Bad for consumers, good for AMD. They need the money for RDT&E and fabrications facilities construction. Their processors are worth whatever the market will pay, but they aren't the "value" proposition they used to be.

[GooD]

Well said Leonardo :thumbsup: