Tony - The latest Tea Leave Reading from Jonathan Joseph of Smith Blarney
Note the spelling mistakes !!!!! And to think - CNBC and paniced investors PAY ATTENTION to these Bozos that can't spell MICROPROCESSOR - or at least use a spell-checker !
Copyright Salomon Smith Barney
"MICRO PRICES DOWNTICK AHEAD OF PRICE MOVE; ANTICIPATING Q3 UPTICK
Demand for micorprocessors in the spot market was firm last week as traders anticipate the Back to School build in coming weeks. The buzz, of course, is Intel’s (INTC-$147, 1M) double-digit expecations for Q3 shipments (we are currently forecasting only about 7% unit growth), with a strong follow-on in Q4. Intel is seeing good demand coming out of Asia, with the belief that both U.S. and European corporate will come back. Pentium prices fell about 5% on average to a 9% discount to list price. Prices fell, as they often do, ahead of the scheduled Intel price move on July 17. Even so, the decline was greater than we have seen ahead of similar cuts in recent quarters, mostly because product availability has improved sharply. As we noted in recent weeks, Intel has been telling customers that the shortage has officially ended.
Demand for Advanced Micro’s (AMD-$90, 2S) Athlon remains very solid. We even saw some prices like the Athlon-950MHz and Athlon-1GHz rise a few percent in the market. Interest in the Thunderbird (the PGA on-motherboard Athlon) appears to be very solid, with not much talk about “infrastructure” issues like chipsets and motherboard. Shipments of the Duron will likely build this quarter as the company gets further chipset support from its Taiwanese suppliers, particularly VIA. |
