HP Caught in Wake of Intel's Sandy Bridge Fisaco
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Hewlett-Packard officials are halting production of PCs containing a flawed chipset from Intel and offering replacements or refunds to consumers who already have bought such systems.
HP's decision follows Intel's announcement Jan. 31 that a design flaw in a supporting chipset tied to its "Sandy Bridge" Core-i processors can cause the PCs not to function properly. Intel has stopped producing the flawed chipset and will start shipping fixed replacements in late February, with plans to be back in full production by April, if not earlier.
HP's actions mirror those of other PC makers who are trying to handle the fallout from the Intel announcement. Intel officials said they found the flaw in its 6-Series chipset -- dubbed "Cougar Point" -- last week, created a fix and decided Jan. 30 to halt production. They began talking with PC makers the same day they announced the decision to the industry.
Acer, Dell, Samsung Electronics and others have said they are taking a range of actions, including offering refunds or replacements to buyers of PCs with the problem chipset. All said they are working closely with Intel on these plans. Overall, the issue could cost Intel as much as $1 billion in lost revenue and related expenses. Officials with the chip maker said about 8 million of the flawed chipsets have been shipped.
For more, read the eWeek article: HP to Refund, Replace PCs with Faulty Intel Chipset.