Intel upped its revenue forecast for Q2 Thursday to at least the high end of its previous forecast, and maybe more. Laptop chips, including Intel's Centrino platform, are selling better than expected.
In the past two weeks we have reported two facts that may relate to Intel's announcement. First, the global switch from desktops to laptops is accelerating. Even the U.S. is reported to have crossed over the 50% laptop threshold, while Europe and Asia have even higher percentages of laptops. Second, ATI forecast a Q2 well below analyst consensus expectations.
ATI sells laptop graphics chips in competition with Intel's integrated laptop graphics. However, the average selling price for a laptop chip is considerably lower than for desktop products, which retail for $50 to $500. (Laptop graphics boards are not sold at retail). Thus, my conclusion is simply that ATI may be seeing market shifts that hurt its revenue opportunities. If so, nVidia should see similar problems -- although NVDA's products cover a broader area than ATIs.
-- Peter S. Kastner
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