According to an unnamed industry source, Intel has decided to drop the price of its 12th generation ‘Alder Lake’ core processors.Taiwan’s Digi Times Intel says it will drop Alder Lake CPUs by up to 20% for PC partners. Sources indicate that this price cut is to encourage orders and boost demand, suggesting that the price cut will affect both desktop and laptop CPUs. At the top of the line, price reductions can mean price reductions of up to $130 per processor.
Recent Intel news points out that disruption is throwing the business off course. Intel confirmed today that it will significantly cut wages and bonuses for all employees. Last week, the chipmaker posted its biggest losses in years. In recent weeks, he also learned that Intel has canceled R&D expansion plans such as IDC21 in Israel and his Hillsboro Mega Lab in Oregon.
With the above series of unfortunate events weighing heavily on management, we’ve decided that part of the answer, if DigiTimes’ sources are correct, is to make Alder Lake processors more affordable. Recent results show Intel is holding uncharacteristically high inventories, with a particularly steep rise in Q4 2022. Meanwhile, customers are believed to be slashing inventories to historically low levels. Intel’s management has to think that if Alder Lake is 20% cheaper than his, it will wipe out stocks of older chips, but DigiTimes says companies that bought shares ahead of the new year will be priced lower. He said he was “outraged” by the change.
In addition to upsetting partners, Intel’s policy has other obvious problems. For example, in markets where demand is already weak, we may need to cut prices significantly to encourage a resurgence. We also have to consider the increased sales of his Alder Lake system that may come at the expense of the Raptor Lake system as well as the reduced sales of competing AMD.
[DigiTimes] Intel cuts the price of the 12th generation CPU by 20% https://t.co/FcZpu5JdjF Here is the price list. Priced lower than new. pic.twitter.com/sDt6Mf9dTjFebruary 1, 2023
If you want an idea of the size of the price cuts that are imminent or are already rumored to be in place, Harukaze5719 on Twitter has posted a small chart showing launch prices, Q4 2022 price increases, and their results. (enlarged above) was created. Price with 20% cut applied. According to this chart, some top-end CPUs could drop as much as $130. Note, however, that the Intel tray price does not exactly match the consumer retail price. DigiTimes also implied that these reductions are for Intel system manufacturing partners such as Acer, Asus, Dell, HP, Lenovo and MSI.
Intel is hopeful that the fortunes of its PC business could turn around in the second half of the year, and many supply chain sources who told DigiTimes are also more positive about the second half. So, in some respects, Alder Lake’s big price cut could be a good opportunity to get his hands on a more affordable Socket LGA1700 PC. This can be upgraded to Raptor Lake or even a Raptor Lake refresh processor.
