Intel plans to raise CPU prices this year.
Some chip prices might rise by 20%.
Intel is preparing to raise the pricing of its CPUs and processors. According to Nikkei, the chipmaker would hike pricing on its flagship CPUs and a wide variety of other chips, including Wi-Fi and other connection chips, later this year. Intel has already notified its customers of the pricing increases, which will almost certainly result in more PC and laptop price increases throughout the holiday season.
According to Nikkei, pricing has not been set, although some chips might see a 20% price increase. Intel warned earlier this year that it was considering raising the prices of certain chips owing to continuous inflation and increased expenses of materials, shipping, and labor. “Intel mentioned on its Q1 results call that it will increase prices in some parts of its business owing to inflationary pressures,” an Intel spokeswoman tells Nikkei. “The corporation has started informing customers about these changes.”
The price hikes are scheduled to take effect precisely as PC shipments have dropped dramatically, and inflation is already affecting PC average selling prices. Gartner reported this week that worldwide PC shipments fell roughly 13% in the third quarter. “This is the greatest decrease in the worldwide PC market in nine years, driven by geopolitical, economic, and supply chain issues affecting all regional markets,” Gartner notes in a news statement.
While component shortages are beginning to alleviate, Gartner attributes the PC loss to inflationary pressure and a “sharp decline in demand for Chromebooks.” During the first two years of the epidemic, the PC market witnessed remarkable growth, but the combination of rising energy, gasoline, and food prices, as well as people spending less time at home, has brought the PC market back to reality.
According to Gartner, the PC market in Europe, the Middle East, and Africa fell by 18 percent. “This is a significant drop in overall volume following two years of extremely strong growth spurred by COVID-19 and renewed consumer and education interest in PCs,” says Mikako Kitagawa, research director at Gartner. “The abandonment or complete cessation of operations in Russia as a result of the Ukrainian war had an even greater impact on the PC market, since Russian PC shipments for prominent PC companies used to represent between 5-10% of overall EMEA PC volume.”
While the PC business remains shaky and Intel prepares to boost CPU pricing, the GPU sector is booming. Last month, the massive GPU scarcity ended, due in part to the ongoing crypto meltdown. Crypto miners are flooding the market with no longer profitable cards, which means fresh GPUs are more easily available on store shelves. Nvidia has begun bundling free games with its RTX 3080, 3080 Ti, 3090, and 3090 Ti graphics cards. We’ve even noticed a $400 price decrease for the RTX 3090 Ti, as well as pricing cuts for several RTX 3080 cards.
If you’re considering about constructing or buying a gaming PC, now looks like a good time to do it, as GPU prices are falling and CPU prices are rising. But we’re about to enter a new age of CPU and GPU advancements, with Nvidia’s new 40-series GPUs expected to arrive in the coming months. If you truly want the newest and greatest, it may be worth waiting to see what Nvidia, AMD, and Intel have in store for later this year.