Intel inventory woes to end soon
By Reuters
November 7, 1997, 3:25 p.m. PT
At its semiannual analysts meeting today, Intel (INTC) executives said they are seeing signs that the ongoing inventory correction among personal computer makers is nearing an end.
"They said the build-to-order phenomenon has cost them half a billion dollars in revenue this year," said Dan Niles, analyst at BancAmerica Robertson Stephens. "Now they are saying that transition is almost over and won't happen again this year."
For about a year, PC makers have been working to reduce the lead time for getting PCs to market. The industry standard had been about two to three weeks, but the goal is to reduce it to less than a week.
The strategy for reaching that goal, however, has caused a slowdown in sales growth for chipmakers, of which Intel is the world's largest.
Dale
I think the dd sector faced the same problem as the chipmakers. |
