It will cost you more and more money to buy an Intel processor

The sudden rise in fuel prices around the world is wreaking havoc on all industries, and not just at the level of commerce, but at all stages of production. It is no longer a secret that things have become more expensive and are going to become even more expensive. A demonstration of it Intel will raise the price of several of its productsyes Therefore, it will be increasingly difficult, economically speaking, to assemble a new computer.

The world of semiconductors, that is, the world of chips, has been predicting a rise in prices for years due to the ditto of production costs. If we add to this that the geopolitical situation has aggravated the cost of energy, then we have a generalized situation of rising prices. Which in the case of Intel is serious. Since if we talk about processors for PCs, they are the ones with the largest market share.

Intel will raise the price of its chips, what is the reason?

Through Nikkei Asia we have been able to learn that Intel will increase the price of chips that leave its factories starting in the fall. Not only processors for different types of computers, but other components such as Wi-Fi and Bluetooth radios that are mounted on a large number of motherboards, or the chipsets themselves.

The increase in prices compared to the current will depend on the type of productbut it is expected not to exceed 20%, but that in some cases said increase will be one digit. In any case, it is said that Pat Gelsinger’s management would be willing to earn less from the recommended retail price of some of their products. All this moved by rising cost of energybut also for the shortage of certain components that are being supplied to other industries.

In other words, not only do we have a more expensive manufacturing process, but also a shortage caused by the lack of components for assembling computers. Which means fewer chips that are in demand. And it is not to defend the price increase, but the factories need a minimum production volume to function, if this is not met, then there is no other option but to raise the price of each unit to keep the company afloat.

The huge slab that Intel has on top

Although it is true that the processors of the company now directed by Pat Gelsinger are expensive and have high margins. The fact that Intel will raise the price of its chips is because they are currently hitting many sticks at the same time right now and not all of them are profitable. Many of Intel’s smaller businesses are financed from what they make on PC components. And much of its R&D may seem superfluous to you today, but it is very important for the development of future products.

intel wafer

Intel’s market share in PC processors has been over 70% for several years, if not decades, and its entire way of operating is on big money margins. Although they can invest in new proposals and technologies, they are not interesting enough for them. So something that would be a source of income and the basis of its business model, for the company founded by Gordon Moore would be a few crumbs. In any case, we hope that this does not prevent us from being able to buy a new computer.

Related Articles

Leave a Reply

Your email address will not be published.