During her last meeting with investors, the CEO of AMD, Lisa Su, has confirmed some important details which explain why the PC sector has maintained high prices even when demand was falling considerably, and has also made clear its strategy for the coming quarters and its short-term forecasts.
We start with the first issue, the issue of high prices in a market with falling demand. This was possible because, as confirmed by Lisa Su, reduced the level of supplies of Ryzen processors and Radeon graphics cards. As the supply fell, the supply was reduced and the stock fell, something that made it possible to offset the drop in demand and keep prices high.
Secondly, the executive has also confirmed that AMD will maintain that same strategy during the first quarter of this yearalthough in a less pronounced way, and has said that it expects demand to bottom out in the first quarter of the year, and that it will remain low during the first semester.
Those statements by Lisa Su allow us to see, if we read between the lines, that the recovery of the PC sector could begin from the second half of 2023although it is impossible to guarantee anything right now, and we can only wait to see what happens in the coming quarters.
It is curious to see that, despite the strategy that AMD has followed to avoid the collapse of prices, in the end the company has been forced to reduce the price of their processors and their graphics cards considerably. Without going any further, the Ryzen 7000 received a series of price reductions so marked that, in the end, they cost 20% less just six weeks after their launch.
In the end it is only a matter of time until the dust settles and demand picks up. I personally believe that in the general consumer market the launch of the motherboards with A620 chipsetwhich will be much cheaper and make it easier for consumers to jump to the AM5 platform and Ryzen 7000 processors.
In the professional sector we already know that the big players in the sector are making cuts, and that this is affecting the forecasts for server sales for all of 2023, which they recently registered a downward adjustment.
