Intel to reportedly raise CPU prices by as much as 20%

Intel — one of the world’s largest and most valuable makers of semiconductor chips and central processing units (CPUs) for computer manufacturers such as Acer, Lenovo, HP, and Dell — is reportedly considering a price hike later this year. If true, it could significantly raise the cost of making computers for those companies and buying computers for consumers. 

Japan-based business newspaper Nikkei Asia reports that Intel’s reason for the price increase is linked to rising costs for nearly everything it uses to produce components. The publication notes that the final percentage increases aren’t locked in yet, but sources say they are likely to range from a minimal single-digit increase to more than 10% and 20% in some cases.

ConsumerAffairs reached out to Intel for confirmation of the reported price increase, but the company did not immediately respond for a request for comment.

Inflation impacts consumer spending

Companies like Intel that pull in nearly $80 billion in annual revenue can probably weather recent price point pressures on things like chips, labor, and shipping, but that’s just part of the equation. The other part is consumer spending, which has taken a crippling blow due to rising inflation.

Nikkei said another consumer-side issue companies are wrestling with is dwindling demand for smartphones, PCs, TVs, and game consoles. We’re only months away from the typical fall release of new electronic gear in time for the holidays, but Gartner reports that worldwide PC shipments experienced the sharpest decline in nine years during the second quarter of 2022.

This has forced device makers to sit on a pile of unsold items. It has become such a problem that Samsung Electronics recently told suppliers to halt shipments of some of its products.