After a few dull weeks, the component market has become interesting again. At VML we do not believe that this is a shortage of any kind but rather a re-alignment as manufacturers start to try out increases to see if they will stick. More exciting that an increase in DRAM pricing however is the news that after a slow spring, sales of processors have started to really take off. My friends in all of these companies tell me that they are delighted with the volumes they are moving, if not a little surprised.
Summer is supposed to be the worst time in the market.
Most of this success is coming from mainstream P266 and P300 equivalent parts selling at rock bottom prices. It seems that the public recognise Intel as a brand but increasingly they see it as high value, high cost brand NOT the ONLY brand. This is a new development. A very nice position but not a good place to be when you want to be in the volume business more akin to General Motors or Ford. Sure everyone wants a BMW but most of us make do just fine with our average saloon.