Notebook original design manufacturers (ODMs) were still impacted by Intel’s ongoing supply issues in the fourth quarter of 2019, according to DigiTimes, which also reported that CPU shipments in Q1 2020 will be up to 15% lower compared to Q4 2019.
DigiTimes reported on Friday that notebook makers experienced weaker-than-expected shipments in Q4 2019. The report attributed this to Intel’s CPU shortages, as well as previous high inventory build-ups to avoid U.S. tariffs.
For Q1 2020, shipments are expected to drop 10-15% sequentially compared to Q4 2019. A large part of this may be due to regular seasonality, considering the end of the holiday season.
Intel’s CPU supply issues seemingly continue to linger. Intel said in October it had increased its wafer capacity by 25% in 2019 and expects to realize a similar increase in 2020. The company said this would increase its PC client supply by double digits in the second half of 2019 (compared to H1) and expected to see another single digit increase in CPU supplies in 2020. However, the company admitted that growth wasn’t enough and that it would continue to struggle in Q4 2019.
Intel has also apologized to customers for supply constraints.