Intel Q2 Financial Secret: "Shhhh...We're on Allocation"
Every Semiconductor Analyst has given Intel the once over a hundred times about their slowing PC unit volume. They are looking in the wrong place because the true secret of the Q2 earnings – in my humble opinion – is that Intel’s factories are full and parts are on allocation. What???
Check it out, high-end, 8 and 10 core XEON processors introduced this spring are selling for between $100 and $1200 more on the gray market. Gray markets can act as a bleed off valve and in times of production excess parts will sell for under list while in times of shortage, a customer will make a quick buck selling out the back door to others who have an urgent need.
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