According to several industry sources, Intel has taken the decision to reduce its supply of Desktop processors. If this is the case, the market situation will not improve.
Intel still fighting for the supply-demand game
Incorporating the drawbacks of 10nm, Intel saturates manufacturing at 14nm. This means that there will be a global shortage of processors. And that will raise prices. Intel Coffee Lake Chips (Core 8000 series) are currently facing a price increase, some products have even increased from 40 to 60%, generally for the end product sold in stores, which means a price increase between 15 and 25%.
The information is signed by Digitimes. Although Intel has promised to find solutions to increase the production of its processors, the results will not be immediately available.
It is obvious that a return to a balance between supply and demand is not on the agenda for this year’s end. More importantly, perhaps we might expect an even more problematic situation.
In its inability to expand its offering, Intel would have taken a difficult but necessary decision. Before Christmas, the giant is said to have reduced the production of its desktop chips by two million units. The goal would be to redistribute resources to other markets. The area of mobility, assembled PCs and servers is mentioned.
AMD taking advantage of Intel’s difficult situation
Price increases are not good news, fortunately, AMD has no such problem, so they can be an option if Intel chip prices rise too much in the coming months.
This would be a strategic decision to enable the giant’s partners to meet the demand. Therefore, this decision will not help the OEM market. Motherboard manufacturers have seen a 10-20% drop in sales of their Intel solutions.