Like the Taiwan branch service DigiTimes reports, Intel is currently trying to sell the penultimate generation of its core processors and is relying, among other things, on price reductions when selling to PC manufacturers. Corresponding negotiations are currently being held with the device manufacturers, most of whom are based in Asia.
Intel lowers prices for “Alder Lake” CPUs for PC manufacturers by up to 20 percent
Specifically, Intel probably offers to sell chips from the “Alder Lake” family to PC manufacturers at prices that are up to 20 percent lower. The company wants to reduce its own inventories in this way, as it is struggling with large quantities of unsold products in the warehouses due to a massive collapse in demand.
“Alder Lake” represents the 12th generation of the Intel Core series and was recently replaced by the 13th generation in the form of the “Raptor Lake” family. The background is the massive losses of 664 million US dollars that Intel had to report a few days ago for the fourth quarter of 2022. For the first quarter of 2023, Intel also announced that losses are expected again. Intel is currently sitting on a good $13.2 billion worth of inventory, a significant increase from the same point last year when it had about $10.8 billion worth of goods in stock. Contrary to the general trend in the PC industry, the company raised its prices by an average of around 10 percent in the fourth quarter of 2022, although it was already becoming apparent at the time that demand had plummeted.
The price reductions now being negotiated should affect the entire “Alder Lake” product range. Selling prices for the Core i7 processors will drop to $40-$50 compared to the OEMs, while the Core i9 CPUs are expected to drop by as much as $70-$80. In some cases, the price reductions are said to have caused massive upset among buyers at the PC manufacturers because they had just ordered larger quantities.
- Intel cuts prices for 12th Gen (“Alder Lake”) processors by up to 20% to teach inventory.
- Negotiations with PC manufacturers are ongoing, prices for Core i7 and i9 CPUs are falling.
- Intel is attempting to clear $13.2 billion worth of inventory.
- Intel had increased prices in the fourth quarter of 2022 despite falling demand.
- PC maker upset at price cuts after pre-order
- Intel struggles with $664 million in losses.
- Losses for Q1 2023 are expected.
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