Intel sales hit by build-to-order

The decision by major PC manufacturers to move to build-to-order and configure-to-order models has begun to bite into chip giant Intel's revenue and is set to become a thorn in its side for the future.

According to some industry analysts, moves by many PC vendors away from output based on demand estimates towards a model catering for customised configurations, has already begun to eat into Intel's revenue. The onus of demand fulfilment has shifted on to dealers that will assemble desktops according to the specifications of prospective customers.

Compaq, IBM, AST, Acer, as well as Japanese vendors Fujitsu, Toshiba and NEC, have all declared they will be configuring PCs to order as a means of slashing inventory costs and extending the increasingly negligible profit margins associated with desktop PCs.

Chris Herbert, PC analyst at Romtec, said: 'Users are becoming more confident.

There is also an increase in the number of IT managers - both tend to know what they're doing.'