Intel has bucked the trend in raising CPU prices: up to 20%
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Update time : 2022-07-22 13:52:51
Intel plans to raise the prices of flagship products such as servers and PC processors, as well as a range of other products, including WiFi and other connectivity chips, this fall. These executives said that Intel told customers that this price increase was necessary due to soaring production and material costs. One executive said that at present, the price increase has not been finalized, and different types of chips may vary, but the minimum increase will also reach a lower single digit, which may exceed 10% and 20% in some cases.
According to the latest report of DIGITIMES, the fundamental reason for Intel's processor price rise is to destock. It is suffering from its prominent problem of processor oversupply, and hopes to limit the supply as soon as possible.
It is also reported that Intel's price strategy of increasing its processors will affect the DIY, OEM and mobile markets. It has planned to increase mobile processors to help solve the shortage problem in some markets, and take necessary preventive measures to prevent changes related to consumer contact.
The source of DIGITIMES is not sure whether Intel's aggressive strategy is successful, but this action should start to see the cost increase of processors and Wi Fi chips as soon as the autumn. Intel's current success plan depends on suppliers' needs and their own strategies, as well as calculating the excess inventory they can maintain. Intel is not the only company to try this strategy recently, because amd adopted a similar approach at the end of last year. Unfortunately, amd encountered suppliers who were unwilling to cooperate. They rejected the company's plan, and AMD had to keep its pricing unchanged.
