Intel has told its customers that it will raise the prices of its processors and micro-chips later this year, when it may be more than 10 or 20 percent for certain products.
According to the report, Intel will raise the prices of all its products but first these will be the chips it manufactures, and this also includes the communication components like WiFi and other chips. The increase will take place this fall, which will have a graded price effect on all technology products based on Intel products as early as the end of the year or the beginning of next year.
Concurrent with the expected rise in prices, Gartner revealed this week that global computer shipments fell nearly 13 percent in the last quarter. “This is the sharpest decline in nine years in the global PC market, following geopolitical changes, economic challenges and the supply chain affecting all regional markets,” Gartner said in a press release.
Many of Intel’s major PC customers, such as Acer and Asus, have warned of declining demand and Intel’s announcement of a price hike puts computer makers in trouble. In contrast, thanks to the crash of cryptocurrencies, GPUs have become more available and prices have dropped back to the manufacturer’s retail pricing.
The telephone market is also expected to absorb a considerable price increase. TSMC, the major chip maker for mobile, has already contacted the companies that manufacture its processors, from Qualcomm and MediaTek to Apple and Intel, and announced the expected increase in production prices.