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

[zlobby]

Whaaaaa! Our profit margins decrease because inflation! Let's bump prices up!

I'm eagerly awaiting their next reports to see if this hike will result in increased net profit.

 

[ixi]

AMD, here you have my money. Of course if you will not follow intel, ahahahaahaha.

 

[Deleted member 24505]

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

Well compared it AMD they are not it seems, think it is AMD that needs to do better by the looks of it. All the Ryzen sales are not equating to massive turn over like Intel has.

 

[ModEl4]

Probably in the next 4 weeks we will have good indication about pricing.
If Intel increase prices i don't think the Core percentage to be so high, worst case imo 13900KS to match 5950X's SRP and the rest accordingly from there, like the below example, so up to 15% max, maybe 20% is for Xeon line:

i went to Intel's website to verify the price of 12900KS and it showed $393 lol

 

[R0H1T]

Where do I get this at under $400

 

[ModEl4]

Where do I get this at under $400

It's easy, all you need is a DeLorean lol

 

[Easo]

I absolutely expect AMD to follow, if not that much.

 

[ModEl4]

I absolutely expect AMD to follow, if not that much.

Maybe, but why?
It won't be justified based on performance imo.
Probably 13600KF will have similar price and gaming performance with 7600X ($299 if it match 5600X) and it will be 40% faster or more in multithreading apps like Cinebench if it's a 6P+8E design!

 

[Deleted member 24505]

Pretty sure AM5 prices will be similar, plus new DDR5 on top, and whatever AM5 boards will cost. Gonna be at least as much as a full DDR5 ADL setup was.

 

[mplayerMuPDF]

The silver lining is that this will hopefully lead to people using their "old" system/components a bit longer, which means there will be less e-waste and energy spent on producing shiny new hardware. That in turn should help curb the ridiculous software bloat that is running rampant in certain parts of the software world.

 

[simlife]

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

its ALSO what you get then a fre billion + dollar subsidy falls thogh... supporting intel when they lit demand tax cuts or they wont spend in a area is a billionare crying hes not making more then he is....intel is the kim / elon musck they will spend millions to go to pace that monkeys did 5 dacdes ealrir but hardcore fans degend not dvivng them money in discounts that the NEVER pass to you and me mr drone...

 

[Vayra86]

its ALSO what you get then a fre billion + dollar subsidy falls thogh... supporting intel when they lit demand tax cuts or they wont spend in a area is a billionare crying hes not making more then he is....intel is the kim / elon musck they will spend millions to go to pace that monkeys did 5 dacdes ealrir but hardcore fans degend not dvivng them money in discounts that the NEVER pass to you and me mr drone...

Sorry but I couldnt quite distill a coherent sentence here.

 

[Ravenmaster]

They'll soon be forced to drop their prices if everybody votes with their wallet and goes with AMD.

 

[Deleted member 24505]

They'll soon be forced to drop their prices if everybody votes with their wallet and goes with AMD.

If you are already AMD and have am4, it means new board, new DDR5, new CPU to switch to AM5. if you are already on Intel LGA 1700 with a ADL CPU it is a drop in upgrade, CPU only, so cheaper than the AM5 option.

 

[TheoneandonlyMrK]

Well compared it AMD they are not it seems, think it is AMD that needs to do better by the looks of it. All the Ryzen sales are not equating to massive turn over like Intel has.

I'm not sure what aspect your looking at, but In the same period overall AMD grew, Intel didn't, look at market Cap.
Plus do you realise how many chips Intel makes outside and peripheral to Your core interest, they're rnd budget, and Potential market is considerably bigger and more diverse than AMD'S though that xilinx purchase helped, but Intel's a behemoth.

And if you already have Am4 or l1700 you likely Don't need to upgrade.

If you. Still want to upgrade, then his point was Intel increasing price's is not going to increase sale's.

Am5 verses i1700 and a CPU, that battle isn't here yet so who knows how it will pan out, it's not looking like it will not be pretty in this market though.

 

[evernessince]

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.

Every new CPU or GPU generation people cite the increasing cost of manufacturing as an excuse for raising prices. Look at AMD and Nvidia's balance sheets, net revenue is way up as is gross margin. By all metrics profits are vastly outstripping overhead related to manufacturing their products.

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.

Intel is not in a favorable position. They are getting their rears kicked in the server market, their new uArch merely matches AMD's last gen 5800X3D, and they are loosing out to Nvidia in many server market segments where GPUs are being used to accelerate workloads over Intel CPUs and other Intel products.

Increasing the price of their CPUs is the worst thing they could do. Alder Lake has good value but after a 20% hike that makes Ryzen the better choice, especially with the AM4 platform which supports vastly more CPUs on a single motherboard.

In essence it takes the very tiny good will Intel was starting to build and ruins it by dashing the short value stint Alder Lake has enjoyed.

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.

Unfortunately all companies are pushing for more profits. It's up to us consumers to inform them that we get the final say of what does and doesn't sell. I advise all PC gamers to look at price to performance and consider if it's worth upgrading to the latest CPU to get those few extra frames.

 

[Why_Me]

Probably in the next 4 weeks we will have good indication about pricing.
If Intel increase prices i don't think the Core percentage to be so high, worst case imo 13900KS to match 5950X's SRP and the rest accordingly from there, like the below example, so up to 15% max, maybe 20% is for Xeon line:

View attachment 254836

i went to Intel's website to verify the price of 12900KS and it showed $393 lolView attachment 254838

The 12700K is going for $350 in the US, the 12700F is going for $312 and the 12400F for $155 atm.

 

[ModEl4]

The 12700K is going for $350 in the US, the 12700F is going for $312 and the 12400F for $155 atm.

OK, but what are you suggesting by mentioning the current US street prices?
Clearly $393 is a mistake in Intel's website (that they still haven't corrected it, at least not yet!)

 

[Why_Me]

OK, but what are you suggesting by mentioning the current US street prices?
Clearly $393 is a mistake in Intel's website (that they still haven't corrected it, at least not yet!)

That might be the suggested retail price.

 

[ModEl4]

That might be the suggested retail price.

12900K $589 & 12900KS $393?

Intel® Core™ i9-12900K Processor (30M Cache, up to 5.20 GHz) Product Specifications

Intel® Core™ i9-12900K Processor (30M Cache, up to 5.20 GHz) quick reference guide including specifications, features, pricing, compatibility, design documentation, ordering codes, spec codes and more.

ark.intel.com

 

[AlwaysHope]

If you are already AMD and have am4, it means new board, new DDR5, new CPU to switch to AM5. if you are already on Intel LGA 1700 with a ADL CPU it is a drop in upgrade, CPU only, so cheaper than the AM5 option.

If I was a current ADL owner, I'd hope so... but it could very well be a repeat of socket 1200 again, whereby Rocket Lake was optimised for Z590 & not so much with Z490. Intel aren't silly & will push n' drive profits anyway they see fit.

 

[Why_Me]

12900K $589 & 12900KS $393?

Intel® Core™ i9-12900K Processor (30M Cache, up to 5.20 GHz) Product Specifications

Intel® Core™ i9-12900K Processor (30M Cache, up to 5.20 GHz) quick reference guide including specifications, features, pricing, compatibility, design documentation, ordering codes, spec codes and more.

ark.intel.com

Is that a mistake because that's some crazy pricing.

 

[ModEl4]

Is that a mistake because that's some crazy pricing.

Obviously! (probably Intel marketing reps don't work on weekends lol , jk)

 

[Wirko]

Will Intel also manage to hike the price of their lowest-tech product, the INTC, by 20%?

 

[ThrashZone]

Hi,
Yep knew intel was missing the hedt revenue
Those price slashes we can thank amd for that killer 16 core, coming out with better performance driving intel gouging down.