Intel CPU Price Increases Could Soon Make PCs more Expensive

Intel is planning to raise the prices of the majority of its chips this autumn due to rising production costs. According to Nikkei Asia, the chip maker has already informed its customers and the repercussions on the PC market could be quite significant this holiday season.

“On its Q1 earnings call, Intel indicated it would increase pricing in certain segments of its business due to inflationary pressures. The company has begun to inform customers of these changes,” the company said in a statement to Nikkei Asia yesterday.

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The report explains that these price hikes will impact various chip types including CPUs, Wi-Fi, and other connectivity chips. “The percentage increases have not been finalized, and could be different for different types of chips, but are likely to range from a minimal single-digit increase to more than 10% and 20% in some cases, one of the people said.”

It will be interesting to see if Intel chips becoming more expensive could make AMD chips even more competitive. AMD’s new Zen 4 architecture using a 5nm process is coming later this year, and Intel’s 14th gen ‘Meteor Lake’ architecture isn’t expected to match this 5nm production until next year.

All in all, Intel price hikes are pretty bad news for the PC market currently experiencing a post-pandemic sales decline. “A perfect storm of geopolitics upheaval, high inflation, currency fluctuations, and supply chain disruptions have lowered business and consumer demand for devices across the world and is set to impact the PC market the hardest in 2022,” a Gartner report explained last month.

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Conversation 5 comments

  • bluvg

    15 July, 2022 - 12:46 pm

    <p>These numbers seem in line with reality at the moment (though other market forces AMD et al push the other direction), unlike the regional grocery chain which overnight increased the prices of some products 85%–when other retailers kept their prices the same. That’s not inflation, that’s just gouging. And there’s a whole lot of that going on. Thankfully the other retailers still haven’t followed suit.</p>

    • William Clark

      18 July, 2022 - 12:17 pm

      <p>I hate to tell you, it’s not gouging. Just because one retailer ups his price and another doesn’t, it doesn’t mean the retailer is trying to gouge you. Prices have gone up, a lot, and some of those costs have nothing to do with the actual product. Increased costs in labor, supplies, services and more are driving all small businesses to raise prices. Big retailers can absorb the cost a lot better than the small guy. </p><p><br></p><p>I’m not surprise that Intel is raising prices. Shortages in chip manufacturing are having an impact on all of us. </p>

      • bluvg

        18 July, 2022 - 7:45 pm

        <p>No. It’s a regional chain and by no means a small business, and the parent distributor that owns it is not regional. Increased costs means nearly <em>double </em>the price? No way. </p><p><br></p><p>I was just talking to a pharmacist worker and friend that said one of their wholesale drug costs just went up literally 10x. That’s not inflation-related costs. That’s Martin Shkreli/Turing Pharmaceuticals-level gouging. </p>

  • Saarek

    15 July, 2022 - 5:09 pm

    <p>With the dollar so madly overvalued at the moment this will generate a double whammy outside of the US where the prices have already risen up to 20% due to weakening currencies. </p>

  • WaltC

    16 July, 2022 - 9:35 am

    <p>No problem if you buy AMD. I also read where Intel is threatening Congress to build its FAB in the EU, instead of the US, unless Congress ponies up the cash Intel thinks it has been promised by the government. Intel, not very impressive these days. Evidently, the company is not exactly rolling in the dough like some people think it is.</p>

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