Intel’s chip shortage could shrink PC market by 5-7% in Q4

"Our conversations with PC vendors indicate that the shortage has been progressively worsening and is likely to have the maximum impact in 4Q18," says J.P. Morgan.
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Intel CPU

Intel is struggling to make enough processor chips to meet market demand, with industry worries that it will take months for the firm to clear the shortage.

The official statement from Intel is as follows:

"Customer demand has continued to improve over the course of the year, fueling growth in every segment of Intel's business and raising our 2018 revenue outlook $4.5 billion from our January expectations. We will have supply to meet our announced, full-year revenue outlook and we're working closely with our customers and factories to manage any additional upside."

Despite Intel’s seemingly positive response to the issue, J.P. Morgan has warned that the CPU shortages could cause global sales of PCs to fall 5-7% in Q4 2018.

"Our conversations with PC vendors indicate that the shortage, which started in small magnitude in 3Q, has been progressively worsening and is likely to have the maximum impact in 4Q18," the firm's Asia-Pacific technology analyst, Gokul Hariharan, said in a note to clients Friday, reports CNBC.

"We expect this to affect both notebook and desktop PCs and likely to have a higher impact on commercial and high-end consumer PCs, where using AMD or older Intel family of CPUs as substitutes are more difficult."

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