To: Tenchusatsu who wrote (211141 ) 9/19/2006 4:00:06 AM From: FJB Read Replies (1) | Respond to Intel's Q3 Brighteningedn.com our checks suggest that MPU (microprocessor unit) demand trends have shown some seasonal improvements slightly ahead of our estimates ,” Luke said in a report. He left his estimates for Q4 and the calendar year unchanged due to uncertainty on visibility into future quarters and gross margin. “Intel’s record inventory days (about 103 days) in Q2, and our view that bulk — over 60 percent, by our estimate – of its $4.3B in inventory is “older-generation” products based on 90nm process technology remains a risk,” Luke said. “However, we believe Intel is making some progress on lowering its substantial inventory levels and currently do not expect a write-down although a modest write-down may remain a possibility.” OEMs may be continuing to favor the price performance of the Pentium D platform. we note that although Intel inventory is likely to increase in Q3 in dollar terms, the inventory may reduce in unit terms as more dual core inventory gets built. We expect the mix to progressively shift towards Core 2 Duo (Conroe) towards the end of 2006.”AMD continues to gain share with key OEMs in the server space , Luke believes. Intel's market share has suffered this year, according to market research firm iSuppli.
