It's no secret that chip giant Intel (NASDAQ: INTC) has not been able to meet all demand for its products, creating a lack of processors. On the one hand, it is good that Intel can sell everything it can do. On the other hand, you miss potential revenue and frustrate your customers and thus open up opportunities for competitors, is not so good.
Although Intel will not report its financial results until the market closed on January 24, computer hardware-focused website Tom & # 39; s Hardware published an interview with Charles Chiang, CEO of MSI, a company selling PC & And PCs are components such as motherboards and graphics cards. In that interview, the exercise offered some insight into when Intel's processor deficiency could be solved. Let's look into it.
It gets better, but …
Chiang told Tom & # 39; s hardware that the Intel CPU supply situation will continue to be "challenging" in the first quarter of 2019. However, he indicated that the shortcomings are easy to ease as the year progresses and that in the fourth quarter of 2019 "absolutely no problem."
This is not It is not surprising. After all, chip production capacity adds a considerable amount of time. The latest demand for corporate PC processors and data center processors has proved to be much more robust than expected management, and since Intel has not introduced enough production capacity to meet this demand, customers will be forced to bring new capacity online.
Understanding Intel's Priorities
Chiang also offered an insight into how Intel has prioritized the shipment of its various products. The company's official line is that it focuses its production efforts on its high-end Core PC processors and its data center processors, but Chiang provided a more granular look at Intel's supply priorities.
Chiang said Intel prioritizes data center processors first, laptop PC processors, and PC processors in the end. It should not be news for investors. Although Intel's performance for the whole of 2018 is not yet up, the company's financial performance during the first three quarters of the year is a clear picture: Intel's priorities are consistent with the amount of revenue generated from each segment. In fact, during the first nine months of 2018, Intel reported that its revenue from data center platforms was $ 15.56 billion. Notebook platform revenue rose slightly backwards, to $ 15.55 billion. In a distant third, desktop revenue was just $ 9.09 billion. USD.
In addition, Intel's priorities match well with the growth of each of these segments. Intel has publicly stated that it did not see a deficiency in the third quarter, so we can assume the following figures, and this year's growth was not affected by the juggling that the company has done recently to try optimally allocate delivery.
Desktop revenue increased by $ 489 million over the first three quarters of 2018, an almost 5.7% jump. Revenue from portable platforms expanded by DKK 1.1 billion. Dollar, a growth of 7.7%. And finally, data transmission revenue grew by $ 3.22 billion a year, up 26%.
The company's priorities no longer represent – and no less – than decision-makers' attempts to focus production capacity on the segments that they consider most important to its long-term health.
Ashraf Eassa has no position in any of the mentioned shares. Motley Fool has no position in any of the listed shares. Motley Fool has an information policy.