Intel has asked notebook makers to support its plan to clear out Sonoma P-M processors, with the amount of inventory being cleared reaching four million units, according to notebook makers.

Intel is offering quotes for the processors at the level of Celeron M processors, with clients including Dell, Hewlett-Packard (HP), Acer and Asustek already purchasing P-M processors in the hundreds of thousands of units per maker at this price level, the makers indicated.

Thanks to the cooperation from notebook makers, the inventory issue has been resolved, with the inventory level in Europe (the worst region) falling to less than ten weeks, sources said.

However, notebook makers are worried that this may put more pressure on the Napa segment, as prices for Sonoma-supporting notebooks were already slashed to around NT$20,000 (about US$614) while those for Napa-based ones are double that amount.

The move also seems to confirm that the Yonah processors are interim products. After the launch of Napa Refresh (Merom) processors in August, price pressure will be felt by Yonah-based notebooks, the makers indicated.

With current Napa-inventory also under possible threat from price-cutting caused by the approaching Merom models, the makers are hoping that Intel will consider lowering its quotes again, otherwise notebook demand may remain dull.

By: DocMemory
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