People get tired of the price of CPUs: slowdown in Intel and AMD

The years 2019, 2020 and 2021 have been truly crazy in the market. Before the pandemic, we already had a progressive and slow rise in products such as processors, highly demanded, especially by Zen 2, and then in 2020, with Zen 3 on the table, things improved a lot and boosted sales. But that’s over, a new report indicates that we are in a process of slowdown in CPUs from Intel and AMD.

It is not normal to grow at the rate that the semiconductor industry is growing and you don’t have to be very smart to understand that everything that goes up fast ends up going down. Record after record after record is what has been experienced in the world of processors and now the cold winter is coming for Intel and AMD, when will it happen and how serious?

User slowdown, Intel and AMD will sell fewer CPUs

Although the processor market is not just Intel and AMD, since there are many renowned manufacturers, the sector unites them at a single point within what it considers CPU or SoC and offers specific data. From IC Insights we have the first analysis of what will be a fairly rapid fall in the market, where global sales are positive right now.

Last year another very positive figure was achieved, not a record as such, but almost, since sales grew an incredible 14% to reach (now yes) a record of 102,900 million dollars. The sales record as such was in 2020 with a 16%so the expectations for this 2022 are really great from this point of view, since the supply chain improves and the FABs are gradually balancing supply and demand, but… What if this does not reflect reality?

Well, according to reports, it can be, and there are really certain nuances that should be dealt with. In the first place, it is stated that the growth of sales of microprocessors with Intel and AMD in the lead will be reduced to 7%, that is, it will drop by fifty% compared to last year, but at the same time sales will reach another record of 110.4 billion dollars thanks to a 6% increase in shipments (2.6 billion units).

Custom data on PC


If we delve into these data we will see that when it comes to the PC in particular, what is offered is even worse. Intel and AMD CPUs have sold a 4% less in 2021 after a 2020 where they rose 14% due to the pandemic, which was expected given that the demand was already filled.

Leaving demand aside because in the pandemic everything changed with telecommuting, the reality is that the increase in prices in general of desktop CPUs is causing more and more users to not choose to renew their PCs. At the same time and in the midst of a slowdown in Intel and AMD CPUs, there is another curious fact and that is that despite this, sales should increase this year pushed by the lower ranges where high-performance processors will be left aside due to their greater price.

There is a bit of controversy here, because earnings are estimated between a 0 and 4% by 2022 powered by Zen 4 and Raptor Lake, but it is not specified how important they are in the statistics, because if the prices are high then it is possible that we will see data like last year, that is, a slowdown in Intel CPUs and AMD who are also dragged down by the high prices of DDR5 and motherboards.

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