Intel hopes to stimulate short-term consumption by raising prices

It was previously reported that Intel will increase the pricing of its processors starting this fall based on factors such as increased energy, raw material, and labor costs. Industry insiders speculate that the price increase will be between 10% and 20%. It is rumored that Intel has notified customers that it will add additional management fees on the basis of existing pricing to make up for the increase in costs, which will affect most processors and various types of chips.

According to DigiTimes, Intel’s processors already have an oversupply problem and need to reduce supply as soon as possible. Intel may soon officially announce plans to increase the pricing of its products, hoping to push PC suppliers to buy more processors and Wi-Fi chips ahead of the official price increase to ease the current glut.

This strategy is not new, mainly to stimulate short-term sales to speed up destocking. Of course, this method also has side effects, which means that after a period of time, sales are likely to drop significantly. After all, some inventory pressures are transferred to PC suppliers, which also take time to consume. In theory, this strategy can reduce the pressure on Intel and reduce oversupply, which should be the top priority Intel is currently facing.

It’s hard to say whether Intel’s wishful thinking will work, after all, Raptor Lake will be launched soon, PC suppliers are not necessarily willing to stock up on so many old products, and consumers may prefer to wait for new products. Allegedly, the price of mobile processors will rise first, and may soon be reflected in the prices of notebook computers sold in the market.

It is unclear whether Intel’s plans will affect Raptor Lake. At present, Intel mainly hopes to clear the existing Alder Lake inventory as much as possible before Raptor Lake is launched.