What was behind the Intel sales blowout at DCG/DPG in Q4/2019? SemiAccurate dug in to the matter and found what is behind it, and at least one other player likely involved.
The deal in question, singular, is nothing short of a massive sale. If you take the rule of thumb that CPUs are ~20% of a system’s BoM cost that leaves a lot of others that have a stake in this too. Unfortunately SemiAccurate can only find one of those names but others should be evident in a few weeks when they report their own Q4 numbers.
On a more interesting note, SemiAccurate had heard about this deal over a year ago, it was set to materialize in mid-2019 but it never came to pass. Two quarters later it happened, and happened in a more compressed time frame than was initially indicated by our sources. That is what lead to the big bang in one quarter rather than trickling in at a ‘mere’ few hundred million dollars per quarter for a year or so as we originally though would be the case.
So who was it, and what did they buy? More importantly is this a one time sale or will it happen again?
Note: The following is analysis for professional level subscribers only.
Disclosures: Charlie Demerjian and Stone Arch Networking Services, Inc. have no consulting relationships, investment relationships, or hold any investment positions with any of the companies mentioned in this report.
Latest posts by Charlie Demerjian (see all)
- Covid-19 is hitting component supplies already - Feb 17, 2020
- Centaur CHA x86 AI CPU pictured - Feb 17, 2020
- One more tidbit about Cascade Lake Refresh pricing - Feb 10, 2020
- Intel officially craters Xeon pricing - Feb 6, 2020
- What caused Intel’s DCG/DPG Q4 2020 sales jump? - Jan 27, 2020