From DEJA... Sales of Pentium 4 motherboards outperform DDR-based motherboards...
From: John Corse (john_corse@hotmail.com)
Subject: Sales of P4 mobos outperform DDR mobos. DDR sales flop
Newsgroups: comp.sys.ibm.pc.hardware.chips
Date: 2001-05-15 09:27:44 PST
digitimes.com
001/05/11&pages=09&seq=41
Sales of Pentium 4 motherboards outperform DDR-based motherboards for first
time
Hans Wu, Taipei; Liu Yi-fang, DigiTimes.com [Monday 14 May 2001]
Earlier in the year, manufacturers of motherboards, DRAM chips and chipsets
were confident that DDR-based architecture will replace SDRAM-compatible
architecture in mainstream products by the third quarter of 2001 at the
latest. After the DDR forum jointly hosted by VIA Technologies, Advanced
Micro Devices (AMD), DRAM chip suppliers, chipset makers and a few
international IT heavyweights at the end of January, most of them had
decided to focus their attention on DDR architecture. Recent market
developments, however, may disappoint them.
Stores in major computer marketplaces in Taiwan noted that due to the
present economic stagnation, next-generation products like Rambus and DDR
motherboards seem to be having difficulty generating a favorable response
from consumers. Moreover, in the second quarter, the traditional off-peak
season for the IT industry, consumers have tended to buy lower-cost
SDRAM-compatible models.
Motherboard distributors pointed out that in the first quarter of the year,
all motherboard vendors still contended that DDR-based motherboards were
more competitive than Rambus motherboards. Both first and second-tier
manufacturers regarded DDR motherboards as the new focus for mass
production. At that time, the Pentium 4 processor was too pricey, and DRAM
chip makers were reluctant to mass-produce Rambus chips, so Rambus
motherboards had no chance but to receive a lukewarm reception. DDR
architecture, therefore, seemed to be the natural successor to SDRAM.
However, while most motherboard makers have dedicated themselves to the DDR
architecture, retailers are relatively conservative about it. Wholesalers
noted that Pentium 4 motherboards were given to some shops on consignment in
the first quarter because retailers believed that demand for DDR
motherboards would rise between the third and fourth quarters. Therefore,
they ordered far fewer Pentium 4-compatible models than DDR models in the
first quarter. The situation, however, has reversed over the last few weeks.
Motherboard distributors attributed the success of Pentium 4 motherboards
over DDR ones to three factors. First, Intel dramatically reduced the price
of the Pentium 4 at the end of April. Second, OEMs (original equipment
manufacturers) have begun to add Pentium 4-based products to their
next-generation product portfolios. Third, an international DRAM module
maker has committed to begin mass production of Rambus modules. These
changes now give Rambus architecture an opportunity to become the
next-generation mainstream standard in the second half of 2001.
Nevertheless, the window of opportunity for DDR motherboards may continue
until the first or even second quarter of 2002 as consumer reception warms.
However, motherboard distributors revealed that according to various testing
reports, DDR architecture does not perform as well as expected and is unable
to attract consumers to replace existing systems. In addition, considering
how quickly the price of DDR modules has been falling and that it may
continue to plunge to the level of SDRAM modules or even lower, consumers
are hesitant about purchasing DDR products. A large number of stores have
thus ceased ordering DDR motherboards.
One motherboard wholesaler went as far as to suggest that DDR motherboards
are now regarded with pessimism, and Pentium 4 motherboards, in contrast,
are gaining an increasingly favorable reception. The source pointed out that
it ordered around 200 to 250 DDR motherboards in February but has only sold
10 to 20 of them since then. Motherboard distributors also pointed out that
DDR motherboards seem to be much more difficult to sell than Pentium 4
motherboards.
Some industry insiders contend that although DDR motherboards are currently
in an unfavorable situation, they still have a chance for a comeback. After
all, moves by AMD or chipset providers may still influence market
development. In the IT industry, no one remains the winner for long. |
