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Processing Intel Price Declines
Electronics | Jul 30, 09
A key line of Intel processors has accelerated a downward price trend begun earlier in the year.
We saw a resumption of significant deterioration in Intel Core 2 Quad pricing back in late April, which I took note of at the time (“Processor Price Drop Striking At Core Of Tech Recovery?”). That erosion has turned out to have been the start of a swoon which calls into question any nascent price stabilization in the processor market, and indeed in the broader computer and consumer high-tech spaces. As noted in our latest press release, last week saw a 4.8% fall in PriceSCAN.com’s Intel Core 2 Quad Index. This adds to a 9.5% drop in the second quarter of 2009, marking a significant pick-up in the pace of decline.
To be sure, there have been some recent signs of processor price strength in other chip lines – see “AMD Quad-Core Prices Rally From Early 2009 Swoon.” But the kind of price cuts we’re seeing in Intel’s Core 2 Quad series cannot help but put downward pressure on competitors’ chips. The winner could be the consumer: if computer manufacturers pass on reduced processor costs, we could see lower systems prices moving forward into the second half. This, combined with pent-up demand, greater economic optimism and the new version of Windows, could spur increased purchases. A bit of buyer relief, if not stimulus, perhaps in time for back to school shopping.
Posted by jeffrey.trester (Permalink)
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