Intel Reportedly Planning 10 Percent Price Hike for PC CPUs
Quick Look
- Intel is reportedly planning a 10 percent price increase for its PC CPUs to boost profitability.
- The company may also implement further staff cuts of 5 to 10 percent and potentially discontinue its Small Core line for industrial and IoT applications.
AI-generated summary
Why It Matters
Intel reported its strongest revenue growth in over 15 years in July, driven by data center and AI business. Component shortages have been impacting prices across the electronics industry.
Intel’s PC CPUs may get more expensive in a few weeks, with Digitimes reporting that Intel has a 10 percent price hike planned, following similar increases earlier this year. According to Digitimes, the price hike is part of a shift for Intel toward increasing profitability for its PC CPU business, rather than keeping prices low to try to expand its market share.
Digitimes also says Intel may be planning to cut another five to ten percent of its staff, although it may also bring in new hires at the same time. Additionally, the report claims Intel could soon put its Small Core line in end-of-life, but this would mainly impact industrial PCs and IoT tech, not consumer PCs.
Intel’s price hike would come just a month after Qualcomm raised its chip prices on September 1st. In July, Intel reported its “strongest revenue growth in more than fifteen years,” largely driven by its data center and AI business. Meanwhile, ongoing component shortages have been driving up prices on everything from RAM to laptops and phones, and the higher prices could last for years.
Open Questions
- When will the price hike officially take effect?
- What is the specific timeline for the potential staff cuts?
