According to a DigiTimes story, Intel is experiencing an oversupply issue with its finest CPUs and is looking to immediately curtail supplies. As a result, Intel declared that it will soon increase CPU pricing. This appears to be an effort to persuade PC makers to buy more CPUs now, before the price jumps, to lessen the surplus.
This tactic has been employed frequently in the past to boost sales when necessary. However, as PC vendors will have already accumulated more supply than they require, a side effect of this method is a discernible decline in sales later in the year. However, this approach should potentially enable Intel to address its overstock issues, which appear to be the company’s primary focus at the moment.
Although it’s unclear whether Intel will be successful with this plan, according to DigiTimes sources, prices are expected to increase this fall for both consumer and server processors as well as Wi-Fi chips. Success will rely on the needs of each vendor and how many more CPUs they can or must employ.
There is a likelihood that Intel CPU price increases will have an impact on both the OEM sector and the DIY market.
And that’s not all; Intel also disclosed that it would increase the cost of its mobile processors to fight inflation, and it has already informed its clients of the pricing increases. As a result, we might soon witness a minor increase in notebook pricing.
Despite this, according to DigiTimes forecasts, notebook volume will rise by 14.3% quarterly in the third quarter as a result of lower demand in the second quarter brought on the COVID limitations in China, not to mention the upcoming back-to-school buying season. Due to predicted 43 percent and 25 percent shipping increases, respectively, as a result of a recovery from material shortages in Q2, Apple and HP will be particularly affected.
It has taken some time for Intel to raise its prices. Similar to what Intel is doing at the moment, AMD thought about raising pricing for its clients in late 2021, but it backfired when vendors refused to accept the new costs. It’s possible that this had an impact on Intel as well, causing it to maintain low CPU pricing.
Despite material shortages disappearing, it appears that Intel will implement a price rise for all of its processors close to the end of 2022. However, according to DigiTimes sources, there’s also a possibility that it won’t. In other words, these plans represent forecasts and potential possibilities. If anything, Intel CPU costs will likely temporarily increase in the early fall, but right before Black Friday and the holiday shopping season, they will begin to decline.
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