Intel has told customers that it will raises prices on most of its processors and other chips by up to 10-20 percent later this year, Nikkei has reported. That could mean price increases on computers products ranging from laptops to servers, at the same time that demand is weakening and sales are dropping.
Intel effectively confirmed the news, referring back to its Q1 earnings call. “Intel indicated it would increase pricing in certain segments of its business due to inflationary pressures. The company has begun to inform customers of these changes,” it told Nikkei.
With the COVID-19 keeping folks working at home, PC sales increased dramatically in 2020-21. That bubble has since burst, however, and key Intel buyers like Acer, ASUS and others have warned of slowing sales ahead. Acer Chairman Jason Chen even noted that his company is no longer seeing a shortage of chips. “Some of the chip suppliers’ CEOs even called me recently to buy more chips from them. The situation has changed,” he told reporters on Wednesday.
Rival chipmaker TSMC previously said that it would race prices by a “single-digit” percentage starting next year. Since that company manufactures AMD’s chips, consumers aren’t likely to find as much price relief by switching brands, either.
Some device makers are starting to build up inventories, which could mean deals in the short term. However, the outlook longer term is less clear. Samsung, for one, reportedly told suppliers to stop shipping parts used to manufacture its PCs, TVs and other devices.
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