AMD Cuts Down Ryzen 7000 "Zen 4" Production As Demand Drops Like a Rock

[btarunr]

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.



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[damric]

AM4 FOREVER

 

[Space Lynx]

Lisa Su if you read this: Integrated graphics wasn't the answer, Intel already has that market, and you have APU's, you should have simply made a budget APU and marketed that to businesses directly. We want the 7800X3D. We would have all given you our money if you had done this on launch day. Saving it for next year was a mistake, because many of us have the upgrade itch and will probably go with Raptor Lake if the price is right at the 6 and 8 core model ranges (the 95 celsius thing will turn away casual users). I personally want a F model Intel, because integrated graphics have given me trouble in high refresh gaming in the past.

Sigh. six figure employees these companies have, and it takes some history major to give them the answer.

 

[Wavetrex]

Imagine reducing prices to increase demand, lol !

 

[trsttte]

Lisa Su if you read this: Integrated graphics wasn't the answer, Intel already has that market, and you have APU's, you should have simply made a budget APU and marketed that to businesses directly. We want the 7800X3D. We would have all given you our money if you had done this on launch day. Saving it for next year was a mistake, because many of us have the upgrade itch and will probably go with Raptor Lake if the price is right at the 6 and 8 core model ranges. I personally want a F model Intel, because integrated graphics have given me trouble in high refresh gaming in the past.

Sigh. six figure employees these companies have, and it takes some history major to give them the answer.

When the 5800x3D beats/equals the 7950x is most gaming benchmarks and AMD themselves already teased 3D cache versions of zen4 why would anyone jump to upgrade right now when the entire platform is so overpriced?

They kind of did this to themselves really

 

[Space Lynx]

When the 5800x3D beats/equals the 7950x is most gaming benchmarks and AMD themselves already teased 3D cache versions of zen4 why would anyone jump to upgrade right now when the entire platform is so overpriced?

They kind of did this to themselves really

No argument here. AMD made a misstep this round, they can change their future though if they take that TSMC time they had allocated for CPU's and switch it over to RDNA3 production, RDNA3 will sell out on day 1, even if its only a 20% gain in raw fps over 6800 XT. Lot of people are ready to upgrade, and don't want to drop $1600 to do so.

 

[Chaitanya]

Not at all surprised, will continue to use 3700x for another 2-3 years before even thinking of upgrade.

 

[kapone32]

Is it AMD or the board vendors? The CPUs are pricey but the boards are the mitigating factor in the equation. Especially when AM4 boards are so inexpensive in comparison. The CPUs are impressive but not at $500 Canadian for a B650. Even DDR5 is not that expensive today.

 

[Battler624]

Ofcourse this would happen.

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.

 

[spnidel]

ridiculous mobo prices + having to upgrade to ddr5 + only 20% (at best, 12% on average lol) performance increase over 5000 series = you've got a nasty combination of "this shit just isn't fucking worth it" - upgraded from 3000 series to 5000 series; got a really nice bump in gaming performance (what I was after) and had to only buy the CPU itself - more than enough to last me at least 3 DDR5 CPU generations, by then it'll actually be worth it, lol

 

[Aretak]

Lisa Su if you read this: Integrated graphics wasn't the answer, Intel already has that market, and you have APU's, you should have simply made a budget APU and marketed that to businesses directly. We want the 7800X3D. We would have all given you our money if you had done this on launch day. Saving it for next year was a mistake, because many of us have the upgrade itch and will probably go with Raptor Lake if the price is right at the 6 and 8 core model ranges (the 95 celsius thing will turn away casual users). I personally want a F model Intel, because integrated graphics have given me trouble in high refresh gaming in the past.

Sigh. six figure employees these companies have, and it takes some history major to give them the answer.

What you want is irrelevant. The response to the inclusion of an iGPU has been almost universally positive based on what I've read. People like to have one for emergencies and troubleshooting. It was something complained about since the first generation of Ryzen. The idea that its inclusion is the cause of the high platform price or poor sales is also complete dreck.

 

[Testsubject01]

Imagine reducing prices to increase demand, lol !

Nah! Nobody wants to let go of those juicy profits from recent years. World economy in large parts is going into a recession and some even in a depression. But they still want to continue to surf that all-time high…

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.

 

[R0H1T]

Nah! Nobody wants to let go of those juicy profits from recent years. World economy in large parts is going into a recession and some even in a depression. But they still want to continue to surf that all-time high…

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.

Or they're just upgrading whatever they have on AM4

One of the perks of having such a long living socket!

 

[Blaazen]

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.

In fact, there are just three chipsets A, B and X. The E means that mainboard has a few layers of PCB more and is capable to run at PCIe 5.0 speeds. Motherboards without E are expensive. Motherboards with E are very expensive.

 

[user556]

Agreed, pricing too high ... but maybe the biggest factor is many have only just upgraded kit during the boredom of the pandemic and are now going back to full time work.

 

[R0H1T]

In fact, there are just three chipsets A, B and X. The E means that mainboard has a few layers of PCB more and is capable to run at PCIe 5.0 speeds. Motherboards without E are expensive. Motherboards with E are very expensive.

PCIe 5.0 was always going to be expensive, probably same goes for the "longevity" of AM5 ~ wanna but cheap go AM4, or just stick to Intel & change motherboards next year

 

[Daven]

Buy AM4 platform on a budget. Buy AM5 if you have the money.

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.

 

[Camm]

Low End CPU's are overpriced

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.

 

[Space Lynx]

What you want is irrelevant. The response to the inclusion of an iGPU has been almost universally positive based on what I've read. People like to have one for emergencies and troubleshooting. It was something complained about since the first generation of Ryzen. The idea that its inclusion is the cause of the high platform price or poor sales is also complete dreck.

well AMD stock is tanking, and Intel stock is rising, and I was going to buy AMD before the integrated graphics, but now am buying Raptor Lake, so I guess Intel's model of giving the customer options instead of forcing one way or the other is working. who knew business was so easy?

 

[Chomiq]

They will not lower the prices unless they know that they can eat the cost. Zen 4, just like 12 & 13 series from Intel, needs to convince the people somehow that they need/have to update their entire platforms. In case of AMD this means:
- 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.

 

[diopter]

The AM5 motherboards are a massive and blatant rip off.

 

[user556]

Intel's KF parts still have the integrated GPU on the CPU die taking up valuable space, it's just disabled. AMD's integrated GPU does not take up any CPU die space, because it's on the northbridge.

 

[phanbuey]

It's because when Zen 3 was introduced there was nothing competing with it -- it was a drop in upgrade that literally nothing else could touch with very little platform cost (apart from hassle of flashing bios) and fighting off the scalpers to get one.

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.

 

[GunShot]

Uh-huh!

 

[watzupken]

ridiculous mobo prices + having to upgrade to ddr5 + only 20% (at best, 12% on average lol) performance increase over 5000 series = you've got a nasty combination of "this shit just isn't fucking worth it" - upgraded from 3000 series to 5000 series; got a really nice bump in gaming performance (what I was after) and had to only buy the CPU itself - more than enough to last me at least 3 DDR5 CPU generations, by then it'll actually be worth it, lol

You know you have the option to not upgrade right? Nobody says you need to upgrade your CPU each generation.

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.