It looks as if Q2 2007 is going to be a good quarter for the PC industry. Eric Savitz reports a strong 2nd quarter demand for the PC and PC-related components. He lists the following companies as those directly benefiting from the upturn as Intel, Nvidia, TI, Intersil and Fairchild. The following reason for the positive outlook follows:
- Demand elasticity from low DRAM and CPU pricing, cutting the bill of materials for by upwards of $100.
- Depleted IC inventory.
- Higher-than-normal build at Dell to prepare for entry into the retail market in the second half.
- Restocking at Hewlett-Packard after the company reduced inventory by more than $1 billion in its fiscal Q2 ended April.
- Intel’s launch of new Santa Rosa notebook platform.
You’ll notice that 4 out of 5 of those reasons should affect AMD in a good way. Then why is AMD not included in Eric’s list? This could be an explanation.
Mr. Douglas McIntyre thinks that AMD’s storm wrecked Q1 will only be followed by another perfect storm of lower ASP, poor demand stiffer competition from its unrelenting competitor. Q2 of 2007 should be strong quarter for the PC industry but nobody seems to have invited AMD.