According to the reports from foreign media on July 18, chip giant Intel told customers that the company would begin hiking prices on its chip products in the second half year by 10-20%.
Intel indicated it would increase pricing in certain segments of its business due to inflationary pressures in its April earnings report. Recently, the company has informed that it would begin hiking the prices on CPU processors, peripheral chips, and other core servers to deal with the increasing costs caused by inflation and that the price volatility varies by type, with the lowest in a single-digit percentage, and some product prices may increase by up to 20%.
The price increases are set to take place just as PC shipments experienced a big decline, and inflation is already impacting average selling prices of PCs. Gartner revealed this week that worldwide PC shipments dropped nearly 13 percent this quarter. “This is the sharpest decline in nine years for the global PC market, brought on by geopolitical, economic and supply chain challenges impacting all regional markets,” said Gartner in a press release.
Reportedly, the CPI of the U.S. in June increased 9.1% year-over-year, reaching a record in the past 40 years.
As inflation increases in the U.S., Europe and much of the world, other chipmakers also begin to increase their product prices to some extent. Besides Intel, Korean technology giant Samsung announced it will increase chip prices by 20%; TSMC told customers it will raise prices by a “single-digit” percentage.
Source from Xinzhixun
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