It looks like Intel will increase the price of their processors
Perspective: If you are planning to buy an Intel processor, it would be wise to make the purchase as early as possible. A new report claims that Chipzilla has told customers it will raise prices for most of its processors and peripheral chips later this year as a result of rising costs.
According to Nikkei AsiaThis fall, Intel plans to raise prices for flagship products such as consumer and server processors, Wi-Fi chips and controllers. The increase is expected to vary by product, ranging from single digits to as high as 20%.
Intel’s decision is reportedly due to rising costs of goods, materials, shipping and labor. There is also the problem of rising inflation, which makes consumers think twice before spending on expensive, unnecessary purchases. We’ve already seen PC, TV and smartphone shipments drop sharply this year as demand declines, although TSMC raised its revenue forecasts as other sectors improve.
Intel previously warned of a coming price increase at its latest earnings conference in April, when CEO Pat Gelsinger said the company would “change products to higher prices.” Another hint came from CFO Dave Zimmer, who said that Intel is “looking for targeted price increases in certain segments.”
Intel’s next generation of processors, Raptor Lake, is expected to arrive in the fourth quarter, and the price increase will likely affect future processors. Intel has long been the more expensive option behind AMD, so it will be interesting to see how the 13th generation chips perform Zen 4 again in terms of price and performance.
Intel still leads the way when it comes to processors. Due to its high-performance hybrid architecture, Alder Lake has proven to be very popular with gamers and enthusiasts, as reflected in the latest Steam survey, where Intel regained 1.28% of AMD’s user share, bringing it closer to a 70% piece of the pie. We just have to wait and see if the red team can capitalize on their rival’s future price increase.
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