Shortages of Intel’s CPUs have persisted for well over a year now, but according to Dell, they actually got worse in the ongoing quarter because of unexpectedly high demand for client computers and servers. As a result, the company had to cut its revenue forecast for the fourth quarter as sales of its PCs were impacted by the tight supply.

Last week Intel issued a letter apologizing for CPU shipment delays because despite of the fact that it increased its 14 nm capacity by 25% year-over-year in 2019, demand still outpaced supply. Furthermore, Intel experienced production variability in the fourth quarter and because it had limited inventory buffers, it could not absorb the impact. Intel did not explain what variability meant in this case, but based on comments from Dell, it looks like Intel could not produce enough processors for commercial and premium system.

Here is what Jeffrey Clarke, COO of Dell, had to say:

“Intel CPU shortages have worsened quarter-over-quarter the shortages are now impacting our commercial PC and premium consumer PC Q4 forecasted shipments.”

Even though Intel’s supply and demand balance is not favorable to makers of systems, Dell’s PC business revenue was on the rise in Q3 increasing to $11.4 billion by 5% year-over-year. Sales of commercial PCs were up 9% to $8.3 billion, whereas shipments of consumer computers were up 6% to $3.1 billion.

It is particularly noteworthy that Dell remains cautious about Intel CPU supplies going forward, though it naturally does not make any actual predictions, but rather promises to monitor situation and adjust forecasts. Dell is not the first PC company that is cautious about Intel’s ability to meet demand as ASUS also expressed similar concerns earlier this month.

Related Reading:

Sources: Dell, Reuters

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  • IGTrading - Thursday, November 28, 2019 - link

    There's so much nonsense in some comments.

    AMD has better IPC than Intel now. Period.

    Run both chips @4.5 GHz or 4.3 GHz and see which comes on top.

    Of course it is AMD and of course that's how IPC is measured.

    AMD Ryzen 3000 has much better power efficiency than anything Intel has in the desktop, HEDT and server markets.

    Anybody saying otherwise and not posting a few different sources to backup his words is lying.

    What is this nonsense "many companies just like Intel better"?!

    Many companies have a few stupid people , yes, but you can't claim all these companies are smart, while entire countries of people are stupid for buying AMD :

    Companies are stuck sometimes with Intel and sometime don't have the brains and talent to do better.

    I know 2 example I have consulted on this week:

    1) Big company, not in IT, has over 260,000 laptops and desktops and 20,000 servers.

    Managing the obsolescence, they will renew quite a few machines.

    Apparently they will pay 48% more and get half the performance and go Intel, instead of AMD.

    Reason given: well, we don't know if we might run into compatibility issues and we're afraid our tech people will be slacking and get a tendency of blaming any future issues on this "AMD move" .

    IMHO that is sooo damn stupid.

    2) Developer company paying over double (207%) to stay Intel and pay more for power and cooling and get less performance.

    Reason?! : Most of our code is not optimised for AMD.

    We fixed some of it, we like the results, but we don't have the time to fix and test all of it, before the move to PROD.

    Maybe next gen .../

    That is again so damn stupid, IMHO.

    And this is just a week of consulting with just 2 clients :(

    So many idiots and so many stupid lies in the comments sometimes.
  • schujj07 - Monday, December 2, 2019 - link

    Basically in corporate world there is the adage "No one was ever fired for buying Intel." I see it all the time and it will be that way until AMD has the marketing to improve their image.
  • Yojimbo - Friday, November 29, 2019 - link

    Why would they have to cut revenue forecasts due to stronger than expected demand? That makes no sense. They had forecast unexpectedly high demand?
  • vladx - Friday, November 29, 2019 - link

    Until AMD invests properly in Software stack and quality assurance, Intel will always remain #1. Sorry AMD, I just built my new PC using Intel+Nvidia and the laptop I'll be buying in 2020 will be Intel based as well.
  • Jimbo Jones - Friday, November 29, 2019 - link

    Sorry about your backside ... unless that's the way you like it ... ?
  • Qasar - Saturday, November 30, 2019 - link

    vladx " Until AMD invests properly in Software stack and quality assurance " huh ??
  • vladx - Tuesday, December 3, 2019 - link

    Meaning AMD's software stack sucks ass and the software testing is pretty much non-existent.
  • Korguz - Wednesday, December 4, 2019 - link

    that sounds more like personal opinion, then fact...
  • Qasar - Wednesday, December 4, 2019 - link

    sure does sound like his personal opinion... but hey.. if he thinks he can do better.....
  • AshlayW - Friday, November 29, 2019 - link

    People are buying Intel CPUs?

    Y Tho?

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