Over the past half-decade, Intel has had to cut chip prices several times in order to stay competitive against AMD. It looks like that trend will finally reverse soon. During Intel’s Q2 2022 earnings call, company CFO David Zinsner stated that he’s confident about the chipmaker’s upcoming products (Raptor Lake) which are slated to hit retail in the second half of the year. Furthermore, prices for the same are likely going to be priced higher than expected.
I’d say the other thing is we’ve got a good set of products coming out over the course of the second half of the year. And I think we’re kind of operating with the wind at our sails in terms of product offerings in all of our businesses. And then third, we are increasing pricing, and pricing generally takes effect in the fourth quarter. We’ve done a fair amount of time.
We also will see more pricing improvement in CCG than DCAI. They’re both — we’re adjusting pricing, but the pricing is more significant in CCG. And so that also gives CCG a lift in the later part of the year.David Zinsner, Intel CFO ( The Motely Fool)
The 12th Gen Alder Lake-S processors landed last year with extremely competitive pricing, offering much higher single and multi-threaded performance than rival AMD Ryzen parts without breaking the bank. Since AMD has decided to keep the core counts unchanged with Raphael, this has given Intel the opportunity to raise MSRPs with Raptor Lake, citing the superior multi-threaded performance.
At this point, it’s unclear just how much of a hike we’re looking at but I’d say an additional $50 to $150 is very probable. AMD’s Ryzen 7000 CPUs will launch in September followed by Raptor Lake-S in November or December. This time around, the pressure to reduce prices will be on AMD (lower core counts) with Intel planning an increase.