News Intel Purportedly Planning to Hike Prices — Report

[Admin]

Intel informs its customers about incoming price hikes due to rising costs.

Intel Purportedly Planning to Hike Prices — Report : Read more

 

[digitalgriffin]

Possibly Intel knows that the 13900K will beat out what AMD has with Zen 4? Top dog always sets prices. Intel's never been afraid to sell things at cost if competition is tight.

 

[InvalidError]

As if Intel and other high-value chip manufacturers didn't already have plenty fat enough profit margins to buffer the rising costs if they actually wanted to. Wallstreet sees the insane net profit margins getting brought down to more normal-ish net profit by rising costs and won't take that lying down, got to push some inflation of their own and pain on their customers. Nothing can be allowed to interfere with their infinite greed.

 

[octavecode]

China might join the game soon....you never know

 

[cyrusfox]

When fuel prices double to triple in price, all prices will rise, logistics, raw materials, everything is on the up, worst inflation in 40 years. Goodbye sub $100 Motherboards and GPUs... Intel CPU's will sell for what the market will bare, i9 in premium space, i5 and i3 for a bargain comparatively(Price performance vs competition).

Everyone is making this move it isn't just Intel.

 

[InvalidError]

When fuel prices double to triple in price, all prices will rise, logistics, raw materials, everything is on the up, worst inflation in 40 years.

When companies making 20+% NET profit instead of the usual healthy 10-15% decide to raise prices some more to maintain their excessive profits instead of eating the inflation, all you get is a market where everyone wants 10% higher wages and benefits to afford the 10% higher profit margins, rinse and repeat until the whole economy collapses from finding out the hard way that it priced itself too far above what normal people can afford. Keep in mind that there will be a few years lag between companies raising prices and the market finding out it cannot sustain it.

 

[digitalgriffin]

When companies making 20+% NET profit instead of the usual healthy 10-15% decide to raise prices some more to maintain their excessive profits instead of eating the inflation, all you get is a market where everyone wants 10% higher wages and benefits to afford the 10% higher profit margins, rinse and repeat until the whole economy collapses from finding out the hard way that it priced itself too far above what normal people can afford. Keep in mind that there will be a few years lag between companies raising prices and the market finding out it cannot sustain it.

Sad but true. I know a company that raised their cost of products by 30% in one year. And did they give their employees a portion of that? Newp. Only option is for my friend to get a new job asking for higher wages to deal with inflation.

 

[spongiemaster]

As if Intel and other high-value chip manufacturers didn't already have plenty fat enough profit margins to buffer the rising costs if they actually wanted to. Wallstreet sees the insane net profit margins getting brought down to more normal-ish net profit by rising costs and won't take that lying down, got to push some inflation of their own and pain on their customers. Nothing can be allowed to interfere with their infinite greed.

Telling companies to absorb much higher productions costs is about as dumb as telling oil companies to sell oil below the market price because gas is expensive. No one was crying for oil companies during Covid when global demand fell off a cliff and the cost of oil went negative. Intel's margins have been eroding for years to the delight of the internet mob. Wall Street has not been impressed by Intel's profit margins. How on earth did AMD have a higher market cap than Intel earlier this year? Intel isn't going to look at that and conclude everything is going great, let's lower margins even more, that will make investors happy. How many billions is Intel spending in Ohio and Germany and Arizona and where ever else they are building fabs? Where is all that money going to come from?

 

[InvalidError]

Telling companies to absorb much higher productions costs is about as dumb as telling oil companies to sell oil below the market price because gas is expensive.

Oil and gas aren't that expensive, prices go up almost entirely because the companies are inflating their profit margins and screwing up the whole economy as they do so for their own personal profit. That is what happens when you have loosely regulated oligopolies running critical parts of the economy unchecked. Those oligarch billionaires don't care, their oil&gas stock prices will inflate with the inflation and that helps with keeping the unwashed masses perpetually in indentured slaves status.

If the entire economy attempts to raise costs to sustain unsustainable profit margins, everyone's costs go up disproportionately, then everyone needs to raise prices disproportionately to maintain unsustainable profit margins, then everyone has to raise prices again, rinse and repeat until the economy collapses because it priced itself out of existence.

For hyper-inflation to stop, companies and their shareholders have to accept lower, more sustainable profit margins. Governments need to step in and set a ceiling on oligopolies' net profit margin to stabilize the whole thing instead of having a ~10 years boom-bust cycle..

 

[kjfatl]

As if Intel and other high-value chip manufacturers didn't already have plenty fat enough profit margins to buffer the rising costs if they actually wanted to. Wallstreet sees the insane net profit margins getting brought down to more normal-ish net profit by rising costs and won't take that lying down, got to push some inflation of their own and pain on their customers. Nothing can be allowed to interfere with their infinite greed.

How fat are the margins? A quick glance looks like 32 billion dollars/yr. Seems huge??
They need to spend about $40 billion this year just to keep up with TSMC, and another $100 billion if they want to get ahead of TSMC. They are basically 3 years away from bankruptcy if they stumble.

 

[InvalidError]

How fat are the margins? A quick glance looks like 32 billion dollars/yr. Seems huge??

24.6G$ NET income on 77.7G$ revenue, that's 31.7% net income. That isn't three years from bankruptcy, that is four years to simply shrug off a 100G$ new fabs investment not counting increased revenue from all of those extra wafers.

Even if Intel ate the first 10% of its costs, it'd still be over 20% net. Before the 2000s' infinite greed went full-throttle, 10% was considered good and 15% great. Net margins in excess of 20% rarely exist outside monopolies and oligopolies.

 

[kjfatl]

Intel's biggest competitor TSMC is spending $44Billion or capital expenses this year on $77Billion revenue. That's 70% off the top that has to go back into the business. To catch up with TSMC, intel needs to spend over $35 billion/yr. for each of the next 10 years.

 

[hotaru251]

Intel might raise prices, but if leaks for am5/ 13th gen are anything they likely lose more market share for DIY, server, etc.

also their gpu have been pretty "subpar so doubt anyones gonna pick 1 vs team red/green

 

[kjfatl]

I like competition.
Intel really screwed up about 5 years ago when they cut back on R&D and let go so many experienced process engineers to raise their profitability. They tried to avoid the expense of going to EUV among other things. If Intel can deliver on their 5 new processes in 4 years, it will be interesting at best.

I just build a new PC using Alder Lake I7. The native GPU is good enough that I'm not sure I should waste $500 on a graphics card.

 

[InvalidError]

They tried to avoid the expense of going to EUV among other things.

To do EUV, you need mass-produced commercially viable EUV sources and those were several years late in development. Can't do EUV when EUV sources are many years behind schedule, so Intel couldn't do much besides push DUV limits for many extra years.

 

[kjfatl]

Intel appears to have made a conscious choice to delay EUV by sing phase shift/multiple exposure technology thinking it would save them money. Intel was the first to purchase the earlier TWINSCAN EXE:5000 system in 2018 and chose to limit its' use to engineering. It was a bad business decision. Meanwhile TSMC purchased the EUV equipment and brought it into volume production.

 

[Joshua Thornton]

Intel would be stupid to raise the prices of their server chips. With genoa coming with a purported 96 cores and bergamo less than a year later with 128 cores, intel is going to dig themselves into a whole they won't be able to get out of. They can do whatever they want in the DIY, prebuilt, laptop, wireless and other chip markets. They can't afford to lose their cash cow.

Secondly, next gen zen 4 processors look to be about 30% faster than zen 3. But that's before they release their 3d v-cache models which could absolutely dominate in gaming.

If they do raise their prices on volume units for enterprise or workstation customers, they most likely will have to re-adjust based on market conditions.

Their 10nm node is pretty good. But if they do another 10nm+, etc, other chipmakers , including ARM, will be on 5 and 3nm. From there it's just going to get worse.

 

[kjfatl]

TSMC is raising prices 20%, so AMD will have to do the same.
US inflation rate is 10% so a 10% increase is baked it.
The big question is, can Intel deliver one process node per year for the next 4 years? It will be interesting to see what happens with Intel has a working set of EUV processes. Their designers haven't been sitting idle for the last 5 years.

Competition is great. Over the next few years, we can see a doubling of performance from AMD, Apple, Intel and ARM.

 

[WhiteSnake91]

I already grimaced imagining how expensive the new gen cpu/gpu were going to be after seeing how expensive the 5800x3D was. Saw an article the other day saying the 4000 series gpu were going to be quite a bit higher cost than 3000 series msrp was too.

I'm holding onto my 3070 until the bitter end, quite frankly I don't really like how the game industry has gone with microtrans, loot boxes, season pass/battlepass and games so buggy it feels like the consumers are unpaid beta testers. It feels like all the passion is gone and replaced by pure greed. My backlog is bad enough to last a lifetime as-is. Recent pc problems on a high end pc despite good specs has really been demoralizing and really has been pushing me to go to console honestly. I mostly find myself playing older or nondemanding games these days on pc. I only got the 3070 on a whim with the stimulus way back, no way I would have paid more than msrp for it.

I've deduced it down to feeling it must be my cpu dying, I've literally swapped out every other part and games of all ages still stutter and lag. Meanwhile, I watched with my own eyes a $300 Xbox Series S outperform my 3700x, 32gb ram, and 3070 pc....the Series S streamed Fortnite at a constant 120fps yet my much more expensive pc stutters and lags. After a certain age you just want stuff to work....in 13 years of pc gaming and building I've never had something like this wrack my brain this much. The cpu was never even OC'd nor had high temps either. I still feel in my heart it's some of the apparent widespread Ryzen fTPM issues that AMD admitted to back in ~March though, coincidently my issues started some months back around the same time...Venders released a bios fix in May a few months after, but for myself and others, it didn't fix our problems, and, we actually noticed lower overall performance after. PC gaming is definitely not all sunshine and rainbows, despite what many portray. Honestly these days, the console storefronts have quite good deals matching or even beating steam at times. Or, if you get a disc drive console, you can get used games cheap, and even trade in old stuff towards new games at stores.

I'm seriously just considering going console primarily, and, even getting a decent enough cheap old i7 desktop off ebay to play my pc backlog and upgrade the psu and add a gpu or even use a low wattage decent enough GPU in it. I literally don't even care about graphics anymore and I'm not picky on performance as long as the games don't stutter and lag out.

As an observation on society at large, sadly, costs on everything are going up. I don't even drive my truck anymore and we just use the much more fuel efficient car we have. I remember years ago, $40 would get a TON of groceries at walmart here budget shopping...now, it feels like the same amount or even less has doubled in price. People are struggling...eventually stuff is going to reach a breaking point. How can people survive if stuff keeps going up in price? You can raise pay, but, does that not create an endless cycle of ever increasing costs? It sucks and is extremely depressing to think about...I usually play games to distract myself from the world or watch shows or listen to music or read. It is truly utterly depressing and demoralizing to think about. Ok, off to play a game now...lol

 

[InvalidError]

I already grimaced imagining how expensive the new gen cpu/gpu were going to be after seeing how expensive the 5800x3D was. Saw an article the other day saying the 4000 series gpu were going to be quite a bit higher cost than 3000 series msrp was too.

Seeing how Nvidia is panic-slashing prices to help AIBs and retailers clear inventory, Nvidia and AMD may need to revise their next-gen MSRP projections downward.

I don't play games often enough nor care enough about high details to justify tossing more than $200 at a new GPU and I'm not upgrading to anything slower than an RTX3050. It may take a couple of months but I'm almost certain pricing will get there eventually since the RX6600 which is far superior is often available under $300. If not, then I guess my next "GPU upgrade" is going to be a Ryzen 11600G / i5-17500.