Intel is expected to raise prices for PC CPUs by 10 percent. [Photo: Shutterstock]

Intel may raise prices for PC central processing units (CPUs) by about 10 percent within the next few weeks in October. The Verge reported on Sept. 8 that Intel is preparing another price increase similar to one earlier this year.

The price adjustment coincides with a shift in the direction of its PC CPU business toward improving profitability rather than expanding market share. Intel is said to be placing more weight on raising profit margins in its PC CPU business than on keeping prices low to widen its market share.

The possible price hike also comes amid broader pricing pressure across the semiconductor industry. Qualcomm raised chip prices on Sept. 1, and manufacturing costs are rising as component shortages persist from memory to laptops and smartphones. If Intel also moves to adjust prices, cost burdens across the PC market could increase further.

The possibility of restructuring at Intel was also mentioned. Intel is said to be considering additional cuts of 5 to 10 percent of its total workforce, while also potentially hiring at the same time. This is seen as more of a workforce adjustment aligned with business reorganisation than simple layoffs.

There is also a possibility of changes to its product portfolio. Intel is said to be considering placing its small-core line on a path to discontinuation. This change is expected to have a bigger impact on industrial PCs and Internet of Things technology than on consumer PCs. The scope of the impact could be limited because it would not directly change the main product lineup for consumer PCs.

Intel said at its July earnings release that it recorded its strongest revenue growth in more than 15 years. Data centre and artificial intelligence (AI) businesses were at the centre of that growth at the time. The latest move, by contrast, is linked to measures to rework the profit structure of its PC CPU business. With growth drivers secured in data centres and AI, its PC business appears to be focusing on defending profitability rather than an aggressive low-price strategy.

The market is also watching the possibility that Intel's shift in pricing policy may not be limited to a short-term increase. That is because shortages are already putting upward pressure on memory and finished-device prices, and there are also forecasts that this high-price trend could continue for years. As a result, whether Intel raises prices in October could be not just a simple adjustment but a signal that a profitability-focused reshaping of the PC semiconductor market is accelerating.

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#Intel #CPU #The Verge #Qualcomm #Internet of Things
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