Image: Intel

Intel isn’t a fan of selling CPUs at a discount, but the market situation has left it with no other option. According to a report by DIGITIMES, the chip giant will be cutting the prices of its processors in the second half of 2020. This is due in large part to the incredible success of AMD’s Ryzen CPUs, which provide a price/performance ratio that few of Intel’s current products can match.

PC makers believe that this plan will roll out in several phases. System integrators, OEMs, and other Intel partners will be the first to get discounts, which means that consumers may not see any MSRP changes at retailers until later in the year (assuming Intel even goes that far with its price cutting).

Intel hasn’t confirmed these plans, but the decision makes a lot of sense due to its crumbling market position and everlasting node-shrink problems, which have prevented the multi-billion dollar company from delivering CPUs that are both powerful and efficient enough to stand with AMD’s Ryzen SKUs.

As a sign of things to come, Intel did slash the pricing of its Cascade Lake-X CPUs in October. These processors were given a generous 50% price cut at launch to save face against AMD’s $750 16C/32T Ryzen 9 3950X. Prices of Skylake-X also began falling shortly after.

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9 Comments

  1. [QUOTE=”Ranulfo, post: 9512, member: 441″]
    I’ll believe it when I see it. They might want to do it before AMD releases the 4000 Ryzen desktop chips.
    [/QUOTE]

    Why not? Intel cut the prices of the 10980XE in half compared to the previous generation, which also saw the same types of price cuts prior to the 10th generation CPU release. I believe Intel will cut prices. Until they solve their 10nm and other production problems, Intel’s out of moves if they want to reduce the bleeding and try and fend off AMD’s increased market share even a bit.

  2. [QUOTE=”Riccochet, post: 9520, member: 4″]
    they’ll cut prices. They have to. Just like AMD had to when they released turds that couldn’t compete.

    Jesus I can’t believe I’m saying Intel can’t compete.
    [/QUOTE]

    It isn’t the first time. The Pentium D wasn’t very competitive and aside from the 965 Extreme Edition they were extremely cheap for the most part. The Pentium D 820 was a monster overclocker and cheap as hell. Intel’s sort of in the same position except for one key thing: Intel didn’t have manufacturing problems in the Pentium D era. It could afford to cut prices to the bone and still supply CPU’s to its OEM customers. Today, making CPU’s on a process largely designed for quad core CPU’s means that those margins don’t exist and that capacity just isn’t there.

    It has to cut CPU’s to make some money and move what little they have. It’s all a stall tactic to buy as much time as possible while Intel sorts its issues out. There is something else that needs to be considered. AMD was able to run in the red for many years. This isn’t normal for a company and I believe that AMD could only do that because its rather small compared to Intel. It doesn’t have the manufacturing liabilities and sheer operating costs Intel does. Intel is a giant comparatively and at its present size, if it collapses it’s going to implode and end up a black hole.

    I think Intel is in far worse shape financially than is generally known. That said, I don’t think the doom and gloom is as bad as has sometimes been reported, but we’ll see.

  3. [QUOTE=”Riccochet, post: 9564, member: 4″]Has anyone seen any shortages of Intel CPU’s for sale anywhere?
    [/QUOTE]

    Every single one of the “new” Intel CPUs?

  4. [QUOTE=”SmokeRngs, post: 9589, member: 117″]
    Every single one of the “new” Intel CPUs?
    [/QUOTE]

    They’ve been crying about shortages long before 10th gen was released.

  5. [QUOTE=”Riccochet, post: 9590, member: 4″]
    They’ve been crying about shortages long before 10th gen was released.
    [/QUOTE]
    I suspect it was bs designed to calm down investors from bailing ship. The shortages are mentioned in every stock analyst report I see on Intel.

  6. And what do you know, Intel stock up over 8% because they crushed estimates. Estimates that they intentionally low-balled last year. They knew they had data server contracts coming due and how much it would mean for them.

  7. [QUOTE=”Uvilla, post: 9566, member: 397″]
    Worthless.. that is how much any Intel cpu is right now.
    [/QUOTE]

    No offense, but I think that is a bit of an overreaction. Yes Intel needs to tighten up things and have come complacent since they were on the top for so long, but I wouldn’t call them worthless.

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