Intel processor, chipset price reductions up to 50%

Bobby Burleson, an analyst at Canaccord Genuity, a Canadian investment bank, revealed that in order to stimulate market demand, reduce the impact of Apple's iPad tablet PC market, and clear inventory, Intel recently lowered the price of its processor and chipset significantly.

Intel's official website price list has not been updated, but the prices of Core i7, Core i5, Core i3, Atom and other processors are said to have been lowered across the board, reaching a maximum of 50%, while some chip sets also have a 15% price cut.

Burleson said in the report: "After this price reduction, the market demand for notebooks may rise in the near future, but it depends to a large extent on Intel OEM customers to supplement channels, especially in China." He believes that the fourth quarter The processor demand will stagnate because high-end notebook customers will wait for the new Sandy Bridge processor to ship in batches, while low-end customers will focus on cleaning up inventory.

Burleson pointed out that Acer, Lenovo, HP have reduced the price of their respective notebook products, but the demand for notebooks in the second half is very stable. “The need to be particularly careful is the risk of inventory overstock, because the PC industry supply chain has focused on the Chinese market in order to make up for the downturn in the US market and the pause in the European market.”

Burleson's proposal for Intel stocks is still held, but the stock price is expected to be reduced from 19 US dollars to 18 US dollars, 2010 annual earnings per share also fell from 1.97 US dollars to 1.91 US dollars in 2011 from 2.03 US dollars $1.79.