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To: Senator949 who wrote (30868)	8/13/1998 4:36:00 PM
From: isdsms	Respond to of 97611

Don't want to go to the DELL thread as there are to many posts to go through. Oh...that's just LoD at it again. :)

To: Senator949 who wrote (30868)	8/13/1998 7:15:00 PM
From: John Koligman	Read Replies (1) \| Respond to of 97611

Thread - I've been reading about rumors of spot shortages of Intel Pentium II processors for about a week now on the Intel thread. This was confirmed via a Dow Jones story today. The processors involved are lower end 266 and 300 mhz PII's. Anyone have any comments on whether the shortage might be indicative of a shift in corporate demand to lower end (not 350/400mhz state of the art chips), or might this simply be a 'forecasting' problem at Intel. John Dow Jones Newswires -- August 13, 1998 Intel Experiencing Some Pentium II Product Shortages By MARK BOSLET Dow Jones Newswires PALO ALTO, Calif. -- Intel Corp. (INTC) is experiencing some spot shortages of chips in its Pentium II product line, the company said. But so far, the chip giant said, the greater-than-expected interest in certain models of processors hasn't led to a change in the company's guidance for third-quarter growth. The chips in short supply are the 266 megahertz and 300 megahertz Pentium IIs, products near the lower end of the Pentium II line and which sell into the business and consumer markets, according to analysts and industry experts. Pentium IIs come in speeds from 233 to 400 megahertz. Intel declined to specify which chips are in short supply. But a spokesman said that shortages are common in the "normal march of technology" to higher performing products. The challenge is trying to balance forecasts of demand with actual demand, the spokesman said. He added that the company expects to meet the demand by September or October. Drew Peck, an analyst at Cowen & Co., also said the shortages appear, at least at present, to be short term, lasting perhaps four to eight weeks. They don't necessarily show a big pickup in long-term demand, he said. Some personal-computer makers and makers of PC components - principally in Taiwan - let their inventories of these lower end products get too low, Peck said. That led to urgent orders to Intel for more products. Some industry experts say the shortages of the 266 and 300 megahertz models also reflect the continued interest in the market for low-priced PCs. Intel has introduced a Celeron line of chips for the low-cost market, but analysts say the chips face tough competition from companies such as Advanced Micro Devices Inc. (AMD). Some PC makers appear to be favoring, more than expected, the higher performing 266 and 300 megahertz Pentium IIs, these experts say. These chips sell at $159 and $209 in quantity and are significantly less expensive than the 333 megahertz model, which sells for $316. Kelly Henry, an analyst at International Data Corp. in Framingham, Mass., agrees that the shortages probably don't reflect a long-term jump in demand. Intel apparently hoped to begin phasing out these low-end Pentium IIs in favor of higher performing chips, such as the 333 megahertz Pentium II. However, because of the interest in low-cost machines, computer makers are saying they aren't ready, she said.