Intel to Hike Core and Xeon CPU Pricing by up to 20%

[AleksandarK]

According to the latest report from Nikkei Asia, Intel will raise its CPU pricing structure starting this fall. Citing concerns of increased electricity, raw materials, and labor costs, Intel has informed its clients that the company will add additional overhead to its existing pricing structure to make up for that difference. The report indicates that most of its microprocessors and peripheral chip products will be affected. However, the main target of the inflating costs is the company's Core and Xeon processor families. If you are wondering just how much will this price hike be, the current speculations point to anywhere from a 10 to 20 percent increase.

Of course, this information should be taken with a grain of salt. However, it is quite possible to see this price hike in the upcoming fall season, and we have to wait and see if it plays out.


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[ratirt]

Always looking for a reason to bump the price.

 

[Vayra86]

That's what you get for building monolithic chips in 2022. Let's see if AMD 'needs' to follow suit.

 

[john_]

That's what you get for building monolithic chips in 2022. Let's see if AMD 'needs' to follow suit.

With TSMC increasing pricing and inflation hitting all the planet, it will be a surprice if AMD doesn't keep prices up. Because in AMD's case they only need to keep their prices where they are. Ryzen 5000 wasn't cheap when compared to older series, Radeon 6000 came with higher than expected MSRP because of the market situation and AMD is going to introduce a new platform and a new GPU line latter, so they don't need to increase pricing, just start (again) with higher MSRPs.

 

[Vayra86]

With TSMC increasing pricing and Inflation hitting all the planet, it will be a surprice if AMD doesn't keep prices up. Because in AMD's case they only need to keep their prices where they are. Ryzen 5000 wasn't cheap when compared to older series, Radeon 6000 came with higher than expected MSRP because of the market situation and AMD is going to introduce a new platform and a new GPU line latter, so they don't need to tehnically increase pricing, just start with higher MSRPs.

Yes and technically they shouldn't have to, given their chiplet approach allows for higher margins/better yields.

So let's see, because they have an opportunity here to capture market share.

 

[john_]

Yes and technically they shouldn't have to, given their chiplet approach allows for higher margins/better yields.

So let's see, because they have an opportunity here to capture market share.

AMD was trying for years to increase it's profit margin. Now they have the opportunity to even move higher than Intel in that area. With their share price losing over 50% of it's value in less than a year (of course that's the case with most tech companies) they might put their ego above their customers and try to please their shareholders. It's also a matter about, do they want more market share in retail? Can they cover their orders in servers and still offer plenty CPUs and GPUs to OEMs for consumer PCs?

 

[R0H1T]

It's also a matter about, do they want more market share in retail? Can they cover their orders in servers and still offer plenty CPUs and GPUs to OEMs for consumer PCs?

Yes & yes, at this pint 6/7nm should be cheap enough for them to reduce prices even on some of their "high end" chips! The leading edge nodes will always cater to the "enthusiast market" & servers among other higher margin segments.

So let's see, because they have an opportunity here to capture market share.

Their only roadblock is the margin, or greed, & probably shareholders?

 

[Vayra86]

AMD was trying for years to increase it's profit margin. Now they have the opportunity to even move higher than Intel in that area. With their share price losing over 50% of it's value in less than a year (of course that's the case with most tech companies) they might put their ego above their customers and try to please their shareholders. It's also a matter about, do they want more market share in retail? Can they cover their orders in servers and still offer plenty CPUs and GPUs to OEMs for consumer PCs?

Precisely - its a choice between long and short term gain I think.

 

[watzupken]

I am not surprise Intel would want to raise prices. Given the strong competition from AMD and ARM over the past few years, Intel have taken the path of reducing prices to fend off competition. It is not that long ago that Intel was charging an arm and a leg for anything more than 4 cores. Now that they are in a more favourable position, it is time for them to try to increase the margins while also addressing the increase in cost. Alder Lake in my opinion was deliberately kept affordable so that Intel can get their “Zen” moment and stop market share bleeding. Now they have reversed the bleeding, no reason for them to keep prices deflated when competition is increasing prices. Zen 4 likely will be costly as well.

 

[BorisDG]

I was wondering why my CPU price is 900+ EUR again. (but it's still not fall )

 

[TheoneandonlyMrK]

I am not surprise Intel would want to raise prices. Given the strong competition from AMD and ARM over the past few years, Intel have taken the path of reducing prices to fend off competition. It is not that long ago that Intel was charging an arm and a leg for anything more than 4 cores. Now that they are in a more favourable position, it is time for them to try to increase the margins while also addressing the increase in cost. Alder Lake in my opinion was deliberately kept affordable so that Intel can get their “Zen” moment and stop market share bleeding. Now they have reversed the bleeding, no reason for them to keep prices deflated when competition is increasing prices. Zen 4 likely will be costly as well.

Or from another POV.

Of f£#@king course Intel wants to increase price's.

They're Intel. .. ..,........... .

 

[AnarchoPrimitiv]

I wonder if this has anything to do with Investors constantly demanding that Intel return prices and profits to their pre-ryzen level at every investor day meeting for the past several years? I was just listening to a podcast yesterday where they were speculating on the price of Raptor lake and one of the hosts predicted that it would be going up considerably and not due to better performance relative to competition, but due to the fact that investors have been constantly demanding a return to the higher prices/profits of pre-ryzen era Intel.

That's what you get for building monolithic chips in 2022. Let's see if AMD 'needs' to follow suit.

Of course AMD "needs" to follow suit.... Has anyone critical of AMD's pricing actually taken the time to compare the Financials between Intel and AMD?

2021 R&D budget
INTEL $15 Billion
AMD $2 Billion

2021 Gross Revenue
Intel $79 Billion
AMD $16.4 Billion

People seem to believe that AMD and Intel compete on equal footing.

 

[R0H1T]

Zen 4 likely will be costly as well.

Not as much more because how fundamentally different AMD makes chips, also don't forget Intel is poised to get those fat juicy (fab) subsidies anywhere between 10~50(?) billion dollars from both sides of the Atlantic

I'd say if they are being subsidized they should not be allowed to raise prices like this!

 

[mechtech]

Need to keep those RECORD PROFITS going.

 

[Punkenjoy]

Citing concerns of increased electricity...

Well they are not too concern when they design their cpu about their customer electricity cost for sure !

As for the R&D for difference between intel and Nvidia, we have to remember that AMD have no fabs and fabs cost huge amount of money in R&D. That money is being spend by TSMC instead of AMD.

Intel also produce way more chips design than AMD that often lease IP from other vendors. This is where they get their competitive edge while spending way less

 

[TheoneandonlyMrK]

Well they are not too concern when they design their cpu about their customer electricity cost for sure !

As for the R&D for difference between intel and Nvidia, we have to remember that AMD have no fabs and fabs cost huge amount of money in R&D. That money is being spend by TSMC instead of AMD.

Intel also produce way more chips design than AMD that often lease IP from other vendors. This is where they get their competitive edge while spending way less

They both/all license IP for integrating into chip's, everything else I agree with.

 

[eidairaman1]

I wonder if this has anything to do with Investors constantly demanding that Intel return prices and profits to their pre-ryzen level at every investor day meeting for the past several years? I was just listening to a podcast yesterday where they were speculating on the price of Raptor lake and one of the hosts predicted that it would be going up considerably and not due to better performance relative to competition, but due to the fact that investors have been constantly demanding a return to the higher prices/profits of pre-ryzen era Intel.


Of course AMD "needs" to follow suit.... Has anyone critical of AMD's pricing actually taken the time to compare the Financials between Intel and AMD?

2021 R&D budget
INTEL $15 Billion
AMD $2 Billion

2021 Gross Revenue
Intel $79 Billion
AMD $16.4 Billion

People seem to believe that AMD and Intel compete on equal footing.

Yet AMD does more for the consumer, funny how that works

 

[R0H1T]

we have to remember that AMD have no fabs and fabs cost huge amount of money in R&D.

And Intel have shown consistently over the past 8-9 years how incompetent they are with it! Do you know the first node that was delayed, according to Intel's own estimates? And then of course the dumpster fire of 10nm onwards.

 

[DeathtoGnomes]

Always looking for a reason to bump the price.

Part of the blame could be because of poor video sales?

 

[Deleted member 24505]

And Intel have shown consistently over the past 8-9 years how incompetent they are with it! Do you know the first node that was delayed, according to Intel's own estimates? And then of course the dumpster fire of 10nm onwards.

Well they certainly aren't doing too bad compared to AMD financially with their dumpster fire.

 

[DeathtoGnomes]

Of course, this information should be taken with a grain of salt. However, it is quite possible to see this price hike in the upcoming fall season, and we have to wait and see if it plays out.

Ahhh the catch all line, speculation is what it is.

 

[R0H1T]

Well they certainly aren't doing too bad compared to AMD financially with their dumpster fire.

In an expanding market their sales shrunk (stalled?) last year while AMD did exceptionally well, no to mention historically low margins! You sure they aren't doing too bad? If not why the need to increase prices drastically

 

[mb194dc]

My guess is demand won't hold up and they'll end up having to accept lower margins... we'll see.

 

[TheoneandonlyMrK]

Well they certainly aren't doing too bad compared to AMD financially with their dumpster fire.

I mean, technically ATM their technology is doing ok.
But they're market share , share price and so on, compared to AMD's growth, those shareholders are not happy let's say.

Hello price rises eh , you may have upgraded at just the right time.

 

[bonehead123]

Well, regardless of the so-called reasons/excuses/justifications they put out there, what it really boils down to the following, in the purest of ways, is:

the need...
the steed....
the greed.....
the deed........
the bleed...........