Third-party sources have already mentioned that Intel Corporation has begun to notify customers in advance of the upcoming increase in prices for new batches of processors in the current half of the year. At the quarterly reporting event, CEO Patrick Gelsinger clarified that the new pricing will come into effect in the fourth quarter; and later added that the increase would affect the Alder Lake family of client models.
Participants of the quarterly event, who tried to find out what factors form the corporation’s confidence in a partial recovery of the PC market by the end of this year, prompted such revelations from Intel executives. Intel management, represented by Patrick Gelsinger, emphasized that customer-side product inventory should be sold by the fourth quarter; and this will allow the company to resume deliveries of its products in volumes more adequate to demand. Secondly, the fourth quarter is historically a season of high demand in the PC market; Intel simply expects that this year the trend will not be broken.
After suffering a $500 million loss this quarter, Intel says it will increase CPU pricing
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The Intel CEO admitted that the ability to independently produce processors allowed the company to avoid transferring increased costs due to inflation to the cost of products for a long time, and therefore it will be able to go up prices only in the fourth quarter. Clients, according to him, will calmly perceive the increase in prices for Intel processors. “We see this opportunity in the client sector; the cost of Alder Lake processors will increase to reflect inflationary changes,” Mr. Gelsinger concluded.
Also, Intel CFO David Zinsner added that even shrinking the PC market to 310 million units a year would keep demand above pre-pandemic levels. The planet’s computer park includes 600 million PCs over four years old; so it will have to systematically get an upgrade, and Intel rightly expects to win during this process. In the corporate segment, which accounts for the bulk of demand; Intel not only has a larger market share; but also a higher average selling price of processors than its main competitor.
