Intel may increase CPU prices as much as 20 percent later this year

The company warns of incoming price increases caused by inflationary pressures

Intel plans to increase the price of its CPUs and chips by as much as 20 percent, although the increase hasn’t been finalized.

According to a Nikkei report (via The Verge), the price increases will hit Intel’s flagship CPUs and a wide range of the company’s other chips, such as Wi-Fi and other connectivity. Intel reportedly already informed customers of price increases, and the change is expected to boost the cost of PCs and laptops during the holiday period.

Intel previously warned of price increases on its Q1 earnings call, suggesting it was looking at increases due to “inflationary pressures.” The Verge notes that increasing material, shipping, and labour costs are also factors.

However, the price increases come as the PC market sees a dip in shipments. The Verge cites a Gartner report that says global PC shipments dropped nearly 13 percent this quarter, the “sharpest decline in nine years.” Gartner cites inflation and a significant decrease in demand for Chromebooks.

The shift comes after the sector saw huge growth fueled by the pandemic and things like shifting to remote work. Gartner also points to significant declines in Europe, the Middle East, and Africa (EMEA), plus declines from companies pulling out of Russia amid the ongoing war with Ukraine.

At the same time, The Verge notes that the opposite seems to be happening with GPUs. The long-running GPU shortage has come to an end, thanks largely to the crypto crash. Crypto miners are offloading GPU cards that no longer make them a profit, and more units are available at stores now. Nvidia has even started bundling free games with some GPUs and offering discounts on others.

In other words, now might be a good time to buy if you’re looking to purchase or build a PC. Intel chip prices are about to go up, and GPU prices are down. That said, Nvidia may launch its new 40-series GPUs in the coming months, and Intel and AMD likely both have new CPUs coming soon. Waiting could be an option too if you’re willing to eat the higher cost of Intel’s CPUs just for the added performance of Nvidia’s new cards.

Header image source: Intel

Source: Nikkei, The Verge