TECH NEWS – Not only processors but also motherboard chipsets and other components will be subject to price increases.
It has been the trend lately: first, Sony dropped a 10/12.5% price increase on the PlayStation 5 Standard/Digital Edition, and Nvidia has done the same to make the average price of the product range equal to a current-gen console. Intel has previously said that it will raise prices on its processors and some of its components in the last quarter of 2022 (i.e. from October), but ITHome reported that motherboard prices would also be higher, as Intel designs its motherboard chipsets, so we will also have to pay more for the Intel 700 series, which will support the 13th generation Raptor Lake processors.
Intel has already announced that the price adjustment will be more significant for the CCG (Client Computing Group), which is responsible for the mainstream computing platforms (see the motherboard and CPU family just mentioned). If it is true, the new generation Intel hardware price will be pretty high compared to the previous ones.
“I’d say the other thing is we’ve got a good set of products coming out throughout the year’s second half. And I think we’re operating with the wind in our sails regarding product offerings in all businesses. And then third, we are increasing pricing, which generally takes effect in the fourth quarter. We’ve done a fair amount of time. We also will see more pricing improvement in CCG than in DCAI [Distributed Computing and Artificial Intelligence]. They’re both adjusting pricing, but the pricing is more significant in CCG. And that also gives CCG a lift later in the year,” said David Zinsner, Intel’s chief financial officer.
Intel’s CCG business fell 25% from a year earlier and posted a 15% drop in earnings compared with the company’s forecast. That is why the company decided to raise prices and keep pace with inflation. In other words: we will pay a lot.