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.
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.