After releasing the disastrous second quarter 2022 earnings report, Intel confirmed that it will raise the pricing of all major products, including CPU, and officially confirmed that the price increase will begin in Q4 2022. Intel said it missed its double-digit targets for both revenue and earnings per share.
Intel’s client computing and data center divisions both saw massive declines in revenue, and while the company reiterated that they’re trying to do better and have a very good set of products in the second half of 2022, it’s going to take a big chunk out of Chipzilla’s Components, including CPUs, are subject to price increases.
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The other thing I’d like to say is that we’re going to have a good set of products coming out in the second half of the year. I think we’re running smoothly in terms of product offerings across all of our businesses. Third, we’re raising our pricing, which generally goes into effect from the fourth quarter. We’ve done quite a bit of preparation.
There will also be more improvements in CCG pricing compared to DCAI. We are adjusting pricing, but pricing is more important in CCG. This will also drive CCG’s development in the second half of the year.
David Zinsner – Intel CFO, The Motely Fool said In fact, talk of Intel’s price hike has been on the table for months, with previous reports suggesting that Intel will increase the price of CPUs and other components by 20%. The list of affected products includes CPUs for client computing servers, as well as a list of other components, such as Wi-Fi connection controllers.
It is worth mentioning that the above three CPU and chip divisions are Intel’s most important business. The company expects some product pricing to rise from single digits to 10-20%, but the final price has not yet been determined, but Intel has cooperated with it. Communicate with partners and customers to prepare for price increases.
Moreover, AMD and Intel will release a new generation of processors in September or October this year, the Ryzen 7000 and the 13th-generation Core respectively. This price adjustment storm may be directly reflected in the initial price of new products.
According to a report by the Nikkei on July 14, Intel has told customers that it will raise the pricing of most microprocessor and peripheral chip products this fall, mainly due to rising production and material costs.
Intel plans to raise prices this fall on flagship products such as servers and PC processors, as well as a range of products including Wi-Fi and other connectivity chips, three industry executives said. A person familiar with the matter said that the increase may vary for different types of chips, which has not yet been determined. The smallest gain is in the single digits, and in some cases, it can exceed 10% or even 20%.
