Despite Conroe, Intel profits fall
07.20.06 - 06:21pm
It looks like Q2 will be chalked up as a transition quarter in Intel’s camp. Despite the release in June of the 51xx series Woodcrest Xeons and the anticipated launch of Conroe and Merom Intel’s Q2 profits are down by 57% from Q2 2005. With the desktop business slowing and the tight margins of the current mobile and desktop processor markets it is no wonder that Intel has seen a drop in profit. Conroe/Woodcrest/Merom should help boost up sales in Q3 but Intel still has a huge stockpile of now obsolete Netburst processors. Look for these “old” processors to be let go at very low prices as Intel slashes prices to clear inventory.
Something to keep in mind for the future is the introduction of the first quad-core processors from Intel. Kentsfield and Cloverton have been pushed up from Q1 2007 to Q4 2006 in hopes to counter AMD’s new 4×4 platform. With initial reports of 40% to 50% overclocks capable on the LGA775 Kentsfield it looks like Intel while have quite the beast to unleash once Conroe gets settled in. Look for this processor to become the flagship LGA775 processor and have a price similar to the 965EE and 955EE processors.
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