PC Market Shrinks: Intel Ready for Discounts on Processors

According to industry sources, Intel is reducing Alder Lake CPU prices for the second time this year. DigiTimes’ report says that Intel slashed 12th-gen processor prices for major PC brands by up to 10% in the second quarter. It is also stated that the technology giant will make a separate 5% discount on its latest generation processors, including the mainstream Core i5 and high-end Core i7 chips.

However, the shadow of a recession began to appear in the tech industry. According to various reports, PC orders will be much weaker in the second half of 2022. As you know, the demand for video cards has dropped. Motherboard sales have declined and will continue to decline in the coming quarters. SSD prices are expected to decrease again due to stocks. As for another example, the 5 major computer manufacturers are ready to cut their July orders by 70-80%, according to the source.

There is other evidence of slowdown in the PC and tech industry. China recently held a big shopping festival. Sales during this event were 20% to 30% lower than last year.

Some manufacturers may be watching Intel’s price cuts and waiting for the right moment. Traditionally, PC manufacturers have pretty high inventories at this time of year. As a result, some are pulling back orders, possibly to get cheaper CPUs at price cuts.

Also, let’s not forget that new processor series from both Intel and AMD will be on the market within the year. 13th Gen Raptor Lake processors are expected to appear in the last quarter. AMD’s Ryzen 7000 chips will hit the market this fall alongside AM5 motherboards. In some leaks, the date of September 15 is mentioned.

The DigiTimes report takes the perspective of the 5 major computer manufacturers in general. But the pessimistic feeling about the PC industry isn’t limited to mainstream PCs. Enterprise PC sales have also slowed to a certain extent. “The PC market is going to be in big trouble,” says the head of Compal Electronics, if it spreads to the gaming market.

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