Wanna, Re: And what's your interpretation of this statement?
"The desktop was were much of the action and results were focused this quarter. Customer response to our accelerated roadmap has been very positive. Pentium 4 processor unit shipments quadrupled this quarter and crossed over Pentium 3 unit shipments two weeks ago."
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Paul did not say they crossed over in the third quarter. He said two weeks ago. That was the first week of October.
The question is how did they cross over.
In the Q&A, talking to Joe Osha of Merrill Lynch:
<Joe>OK, then ? the second issue, in terms of the P (4?) obviously the transition has been quite dramatic here. Do you have any issues or are you concerned about any P3 inventory out there, given the rapid transition that may need to be sold or otherwise gotten rid of?
<Paul>No, I think we have done an outstanding job of moving the inventory to the channel early on and working with our customers to make sure they didn't get caught flat-footed. To my knowledge, there certainly is not excess inventory at Intel. We would certainly be shipping some if we had some more (laugh) and in the channel there is essentially none.
<Joe>OK, thank you very much.
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It seems clear that Intel ran out of P-IIIs. Could have shipped more, but didn't have them.
Previously, we had a question by Scott Randall:
<Scott> Ok, thank you. First, clarification, the press release talks about ASPs being lower, is that lower as in slightly lower, moderately lower, or lower, or is that just lower?
<Andy> It's lower as expected. If you remember what Paul said, we did the roadmap acceleration program. As we began the quarter, we took an objective of making sure that the question in the consumer's mind wasn't which processor to buy, but which Pentium 4 processor to buy. We knew that the 845 was coming out which would take the Pentium 4 into the business space, we knew XP was coming out, so we wanted to make that price move. We wanted to take our technology into the space we knew that we would pay and ASP and a margin price in the third quarter because of it, it actually came out almost exactly as we predicted.
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In the Q2 CC:
<Mark Edelstone> Uh, thanks, guys. Allright, question relates to, uh, Pentium 4 and the ramp. Uh, Paul, I think he said that units doubled sequentially, or just about doubled sequentially in Q2, just to confirm that first.
<Paul> Yes, that's what I said.
<Mark> Okay, and then, as you're accelerating the roadmap, uh, what is your expectation for a crossover at this point and time on the desktop. I understand the comment that you're going to, um, price this in the, uh, in the price points to move, basically, about 800 dollars. Would you expect that by the end of the year, then, we will have the crossover?
<Paul> Oh, I think you'll see more than a crossover. I expect to be transitioned fundamentally out of Pentium III on the desktop, um, before year end.
<Mark> Thank you.
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That points to poorly planned ratio of P-4 starts to P-III starts 'cause they're clearly not out of P4s(Inventory grew).
To me that says they ramped the P-4 over the P-III in anticipation that it would be competitive with the XP as opposed to the P-III which wouldn't.
I think they were wrong, Neither CPU is competitive, but the P-III is less uncompetitive for many things(While the P4 is less uncompetitive for others. )
So my answer to your question is that As of the first week of October, more P-4s are coming off the line than P-IIIs, and that there is an inventory glut of 423 Pin P-4s that they are having a tough time getting rid of.
Having spent a good amount of time on that question for you,
what's your interpretation of this line:
<John Joseph>So, the nature of the sequential increase out of disti does not lead you to believe there is an awful lot of inventory in that particular channel.
<Paul>There is zero Intel inventory in that channel that is not meant to be there.
tgptndr |
