Intel decides to increase the prices of its CPU models and chips. According to Nikkei Asia reports, the company has informed customers it will raise prices on most of its processors and various products later this year. So, how will this affect us?
Intel plans to raise CPU prices with broad range of products
The costs in the production of electronics are increasing day by day. On the other hand, companies find the solution to increasing the prices of their products. Intel, one of the world’s largest chipmakers, is one of these companies.
The company plans to increase the prices of its products, such as CPU units for servers and computers, later this year. Unfortunately, that’s not all; Intel produces chips used in Wi-Fi and many additional connectivity technologies.
This means there will be a severe price increase, especially in laptops and various PC parts. Intel says the price hikes are required because of the surging costs for production and materials. The percentage increases have not been finalized yet, but leaks show that the increase could reach almost 20 percent.
Prices will remain stable for a while
Fortunately, the price increase will not have an immediate effect. Demand for smartphones, PCs, TVs, and game consoles weakened earlier this year. Worldwide, PC shipments dropped nearly 13 percent this quarter. Because of that, manufacturers and sellers have a sizeable unsold stock in their warehouses.
For Example, Samsung has told suppliers of a range of its products to halt shipments because the company has more than 50 million unsold products. This may even cause prices to decrease for a while, but sooner or later, there will be an increase.
GPU prices are falling while CPU prices are rising
While Intel is getting ready to raise CPU prices, the opposite is happening on the GPU side. The collapse in cryptocurrencies causes graphics card prices to drop because miners are flooding the market with no longer profitable cards. Whether you’re considering building a gaming PC or buying one pre-built, now seems like a good time.