Monday, October 17th 2022
AMD Cuts Down Ryzen 7000 "Zen 4" Production As Demand Drops Like a Rock
AMD reportedly scaled down production of its Ryzen 7000 series desktop processors in response to bleak demand across the PC hardware industry. Wccftech claims to have read an internal company document calling for reduced supply to the channel as market response to the Ryzen 7000-series is weak. This comes hot on the heels of AMD revising its Q3-2022 forecast, trimming its guidance by a $1 billion drop in revenue, citing weak demand in the PC market. However, we are seeing no deviation from the launch pricing for Ryzen 7000-series SKUs or compatible Socket AM5 motherboards. The platform went on sale from late September, on the same day that Intel announced its competing 13th Gen Core "Raptor Lake" processors. The new Intel chips are expected to start selling from a little later this month.
Unlike 13th Gen Core processors, Ryzen 7000 series processors appear to be a victim of the platform—notwithstanding the high pricing of the processors, which start at $299 for the 6-core 7600X, buyers lack access to affordable motherboards, and have to contend with expensive DDR5 memory. Pricing of cheaper LGA1700 motherboards based on entry-level H610 and B660 chipsets with cost-effective DDR4 memory support have added depth to consumer choice, besides Intel's 12th Gen range starting from under $150.
Source:
Wccftech
Unlike 13th Gen Core processors, Ryzen 7000 series processors appear to be a victim of the platform—notwithstanding the high pricing of the processors, which start at $299 for the 6-core 7600X, buyers lack access to affordable motherboards, and have to contend with expensive DDR5 memory. Pricing of cheaper LGA1700 motherboards based on entry-level H610 and B660 chipsets with cost-effective DDR4 memory support have added depth to consumer choice, besides Intel's 12th Gen range starting from under $150.
242 Comments on AMD Cuts Down Ryzen 7000 "Zen 4" Production As Demand Drops Like a Rock
Sigh. six figure employees these companies have, and it takes some history major to give them the answer.
They kind of did this to themselves really
Everything about this platform is expensive, and the choices are PLENTY but expensive, too plenty and too expensive. Reduce your chipsets, make them 3 like before, A---- and B---- and X---- Why add an E to motherboards? fuckin motherboards of all things.
Reduce your CPUs by a 100$, tell your partners to make motherboards that can run the 7900X without issues at ~150$, and pray that ram prices continue to drop.
One might think buyers are waiting for Intel 13th gen and Ryzen X3D SKU's to get the best bang for their money, given future prospects.
One of the perks of having such a long living socket!
I for one will build a brand new PC from the ground up buy I’m waiting for as many CPUs and GPUs to come out before Xmas. I want to see my options before starting to buy components for the build.
Marketing fuckup not holding back lower end CPU's to launch with B series boards
Poor availability of EXPO
And lastly
Not having vCache parts available from the start (segment your market by having X parts with vCache, non X without)
Not rocket science AMD, but apparently you wanted that arrow to the knee.
- expensive cpu
- expensive motherboard
- expensive ram
Sometimes it also means stepping up the cooling system.
This combined with inflation raging across the world might be the reason why people are not eager to jump on the next best thing.
I don't see how somehow magically this will not apply to RDNA3. AMD probably still has plenty of leftover RDNA2 cards left to sell (6900xts go for as low as €750), unless they plan to cannibalize it with launch of next gen then new cards won't be any cheaper.
Zen 4 isn't dominating Zen3 X3D and Alder Lake the way Zen 3 did its competitors - and we didn't know about Zen 3 X3D. We all know Zen 4 X3D is coming along with cheaper mobos and cheaper ddr5 in a matter of a few months... you would have to be absolutely desperate or clueless to buy this current line.
This was just a product strategy fail from AMD - they tried to recreate the Zen 3 launch not acknowledging that the environment changed and Zen 4 non V Cache just isn't a good product in the current environment.
In my opinion, the pricing is a problem, there is no doubt about it. But the high launch price was also true for Ryzen 5000 Series. The 500 series chipset wasn’t cheap at launch, and with shortages, memory prices were also on the high side. The wider issue is that economy is tanking and cost of living skyrocketing, every company will feel the pain. It’s not just an AMD problem because the likes of Apple, Nvidia and Intel, etc, will likely also see demand plunge as well.