Intel announces price increases – the reasons

Chip manufacturer Intel is struggling with rising production costs and therefore wants to increase prices for end customers.

Intel, the largest chip manufacturer in the USA, is planning price increases for many of its processors for servers and home computers in the fall. But other Intel products, such as chips for WLAN or Bluetooth, are also set to become more expensive in the future. According to Intel, the price increases are necessary to compensate for the rising costs in production and for components. According to Intel, it has not yet been determined exactly how high the price increases will be and will differ depending on the chip. However, increases of 10 to 20 percent are under discussion.

Chip shortage over

Inflation in the USA and worldwide is also a reason for the price adjustments. Many customers would also postpone future investments. The demand for smartphones, PCs, TVs and consoles has fallen significantly this year. Accordingly, the products are piling up in the manufacturers’ warehouses. The most important Intel partners such as Acer or Asustek Computer have already warned of a downturn. At Acer, for example, there is no longer a shortage of chips to be lamented.

Raptor Lake and AMD

Intel has now announced to Nikkei Asia that inflation together with lower demand are now making price increases inevitable. However, it remains unclear when exactly Intel processors will become more expensive. The extent of the increased prices also remains open. Intel also has to keep an eye on its competitor AMD, which also offers fast CPUs at attractive prices. In the fall, Intel is about to unveil the new Raptor Lake processors, which are said to offer even more cores and more power than the current CPUs.

Raptor Lake: Benchmarks for Intel’s Core i9-13900

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