Intel's CPUs could get 10% more expensive next month

Intel is reportedly planning to raise the price of its Central Processing Units (CPUs) by 10% next month, according to reports from DigiTimes. The increase may come into effect on October 5th, and the company is also rumored to be reducing its workforce by 5% to 10% globally. CEO Lip-Bu Tan is reportedly focusing on improving profit margins as he reviews CPU pricing, manufacturing costs, and the product lineup.

Some lower-core products, which are less profitable, might be discontinued. This news is not surprising, as Intel raised the prices of its Core Ultra 200S Plus processors just months after their launch. Although the Core Ultra 7 270K Plus was priced at $299 initially, it later increased to the $339 - $349 range, while the Core Ultra 5 250K Plus moved from $199 to $219 - $229.

These higher prices were not likely to boost their competitiveness against AMD processors, particularly given LGA1851's limited upgrade options. In March, Intel faced CPU shortages, causing delivery times for both Intel and AMD customers to extend from weeks to months due to AI data centers' high demand for processors. Intel seems to prioritize high-profit-margin server CPUs in its own fabrication facilities, which reduces the capacity available for PC chips.

The company's financial results, which saw a 25% revenue increase to $16.1 billion in Q2, with a 59% surge in Data Center and AI sales, may explain its emphasis on squeezing more profit from its products. However, the upcoming price hike might not lead to cheaper shopping options for PC builders, as Intel is still dealing with a shrinking PC market and high memory costs.

While there is no confirmed list of affected processors or a guarantee that every retail price will rise by exactly 10% on the same day, the situation remains uncertain.