Distributors not happy as Intel cuts delivery of hot CPUs

Intel, in an effort to promote wide acceptance of the 800MHz FSB (front-side bus) standard, is cutting back deliveries of its 533MHz FSB CPUs to distributors, according sources. Distributors are not happy about Intel's strategy, as Intel is only on average fulfilling 30-40% of orders placed by distributors for 533MHz FSB-supporting CPUs, according to sources. Intel's move is limiting potential sales for the distributors at a time when demand for the 533MHz FSB standard and supporting components are at an all-time high due it its lower costs, sources added.

According to estimates by first-tier motherboard makers, 30% of all Intel motherboards sold come from Intel's 800MHz FSB-supporting 865 and 875 family while 70% come from the company's 533MHz FSB-supporting 845 family. Intel's business strategy is not surprising to distributors, however, as the company will begin delivery of two more 800MHz FSB chipsets, the 848P and 865GV, on August 11, taking aim at the market just below the current 865 market.

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