According to a DigiTimes story, Intel is experiencing an oversupply issue with its finest CPUs and is looking to immediately curtail supplies. As a result, Intel declared that it will soon increase CPU pricing. This appears to be an effort to persuade PC builders to buy more CPUs now, before the price jumps, in an effort to lessen the surplus.
Although it’s unclear whether Intel will be successful with this plan, according to DigiTimes sources, prices are expected to increase this fall for both consumer and server processors as well as Wi-Fi chips. Success will rely on the needs of each vendor and how many more CPUs they can or must utilize.
There is also no doubt that Intel’s approach of raising the price of its processors will have an impact on the reported mobile markets, DIY and OEM markets. To help reduce some of the market inflation, Intel has planned to boost mobile processors. The company has also taken the required steps to notify customers of the changes. Nothing may be immune to price changes by Intel.
Despite this, according to DigiTimes forecasts, notebook volume will rise by 14.3% quarterly in the third quarter as a result of lower demand in the second quarter brought on the COVID limitations in China, not to mention the upcoming back-to-school buying season. Due to predicted 43 percent and 25 percent shipping increases, respectively, as a result of a recovery from material shortages in Q2, Apple and HP will be particularly affected.
The cost of CPUs is anticipated to rise at the end of this year, although Intel may decide against doing so depending on a variety of factors. In order to make room on the market for next-generation CPUs, Intel might aim to reduce expenses by getting rid of current chips. There is no definitive answer as to what Intel may or may not do at this stage because everything is still speculative and based on assumptions.