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Intel confirms CPU price hikes, starting in Q4
After releasing a disastrous second-quarter 2022 earnings report, Intel confirmed that it will raise the pricing of all major products, including CPUs, and officially confirmed that the price increase will begin in Q4 2022.
After releasing its second-quarter 2022 earnings report, Intel said it missed its double-digit targets for both revenue and earnings per share. Both Intel's client computing and data center divisions saw huge declines in revenue, and while the company reiterated that they're trying to do better and have a very good set of products in the second half of 2022, it's going to take a big chunk out of Chipzilla. Components, including CPUs, are subject to price increases.
In fact, talk of Intel's price hike has been under discussion for months, with previous reports suggesting that Intel will increase the price of CPUs and other components by 20%. The list of affected products includes CPUs for client computing servers as well as a list of other components such as Wi-Fi connection controllers.
It is worth mentioning that the above three CPU and chip divisions are Intel's main business. The company expects some product pricing to rise from single digits to 10-20%, but the final price has not yet been determined, but Intel has cooperated with it. Communicate with partners and customers to prepare for price increases.
Both AMD and Intel will release a new generation of processors in September or October this year, the Ryzen 7000 and the 13th-generation Core, respectively. This price adjustment storm may be directly reflected in the initial price of new products.
According to a report by the Nikkei on July 14, Intel has informed customers that it will increase the pricing of most microprocessor and peripheral chip products this fall, mainly due to rising production and material costs.
Intel plans to raise prices this fall on flagship products such as servers and PC processors, as well as a range of products including Wi-Fi and other connectivity chips, three industry executives said. A person familiar with the matter said that the increase may vary for different types of chips, which has not yet been determined. The smallest increase is in the single digits, and in some cases it can exceed 10% or even 20%.
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