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Intel Sonoma Components In Short Supply

Intel has been unable to keep up with demand for Sonoma, its notebook technology introduced in January. The supply constraints should be fixed by the end of the quarter as the company raises production levels. Intel’s inventory levels were quite volatile in 2004. In the third quarter, Intel announced it would cut back on production based on weaker-than-expected demand for its chips combined with higher-than-expected yields from its new 90 nanometer processing technology. That situation had reversed by the end of the year, with Intel Chief Financial Officer Andy Bryant saying on Intel’s fourth-quarter earnings conference call that supply was more constricted than he would like due to stronger-than-expected demand. Intel expects to shift its notebook customers to the Sonoma platform by the end of 2005, and several major notebooks manufacturers around the world have released systems with the new technology.

Intel has been unable to keep up with demand for Sonoma, its notebook technology introduced in January. The supply constraints should be fixed by the end of the quarter as the company raises production levels. Intel’s inventory levels were quite volatile in 2004. In the third quarter, Intel announced it would cut back on production based on weaker-than-expected demand for its chips combined with higher-than-expected yields from its new 90 nanometer processing technology. That situation had reversed by the end of the year, with Intel Chief Financial Officer Andy Bryant saying on Intel’s fourth-quarter earnings conference call that supply was more constricted than he would like due to stronger-than-expected demand. Intel expects to shift its notebook customers to the Sonoma platform by the end of 2005, and several major notebooks manufacturers around the world have released systems with the new technology.

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