Dell, Gigabyte and MSI pull products in wake of Sandy Bridge chipset flaw, HP faces delays (updated)

Every time we write about Intel's flawed Sandy Bridge chipset and the need for it to be physically replaced, the financial costs go up. Intel initially projected a $300 million hit to revenues, but then it set aside $700 million to cover repairs and replacements, which together brings us to the current estimate of $1 billion lost in "missed sales and higher costs." Those missed sales will be coming directly from guys like MSI and Gigabyte, two of the major motherboard makers, who have stopped selling their Sandy Bridge-compatible models until Intel delivers untainted stock, and also Dell, who has nixed availability of its Alienware M17x R3 gaming laptop. CNET did spot that HP and Dell were still selling laptops with the offending chipset in them yesterday, but we imagine both will get their online stores straightened out in due course. For its part, HP says it's pushing back a business notebook announcement due to this news, much like NEC has had to do. Moral of the story? Don't let faulty chips out of the oven.

Update: Dell says the M17x R3 is just the tip of the iceberg here: "This affects four currently available Dell products, the XPS 8300, the Vostro 460, the Alienware M17x R.3 and the Alienware Aurora R.3, as well as several other planned products including XPS 17 with 3D. We're committed to addressing this with customers who have already purchased one of the four products and will provide further details on this as it becomes available."

[Thanks, geller]