Expect CPU shortages until late 2019

Expect CPU shortages until late 2019

Consumers and businesses are  increasingly relying on more powerful computers to run their applications. But in the coming months, you may have issues obtaining the PCs you need. Since 2018, Intel has reported a processor shortage, which some experts believe may not be resolved until late 2019. Read on to learn more.

Reasons for the shortage

There are many factors to Intel’s long-running chip production problems. For starters, demand for Intel chips has been higher than expected, as more businesses depend on them for resource-intensive applications, cloud computing, and state-of-the-art machines.

Additionally, there is a major delay in the production of Intel’s next-gen processors, largely because the company is short on capacity. This means businesses will not have access to PCs featuring these processors until much later in 2019.

Intel also appears to be prioritizing development of server CPU, as they make up a huge portion of company’s revenue. Focusing on server chips, however, has resulted in slower production rates of consumer-grade CPUs. Desktop CPU revenues, in particular, lagged significantly behind, which resulted in the shortage of chips for desktop PCs.

What’s being done

Experts predict that server CPUs productions will slow down by the second half of 2019, freeing up enough space to meet the demands for desktop and notebook CPUs. In fact, according to Intel’s interim chief executive Bob Swan, “We are working closely with our customers to align demand with available supply while we add capacity and we expect supply-demand balance to improve by mid-year.”

Intel also promises that PC shortage issues will be completely resolved by the third quarter of 2019. In the meantime, computer hardware manufacturers like Lenovo and Asus have their work cut out for them. To make up for the Intel chip shortage, PC manufacturers are strongly considering switching to AMD processors for desktops and laptops.

What does the shortage mean for businesses?

Businesses who are unable to acquire the newest series processors for desktops and laptops may have to look for alternatives. But if your company is on a tight budget, it may make sense to wait until late 2019 to upgrade.

Sticking with older hardware does leave your business exposed to security and other risks, so it’s important to stay on top of the latest updates and regular maintenance. Fortunately, a top-notch managed services provider can proactively manage your hardware for a reasonable monthly fee.

If you want to hear more about the latest hardware news and developments, stay tuned to our blog. We also provide services for all things IT, so contact us today!

Published with permission from TechAdvisory.org. Source.