Intel price hikes could make PCs more expensive

Intel has told its customers that later this year it will increase the prices of most of its processors and other chips by up to 10-20 percent. Nikkei has called. That could mean price increases for computer products ranging from laptops to servers, while demand weakens and sales slump.

Intel was effectively confirming the news, referring to its first-quarter earnings release. “Intel has stated that it would increase prices in certain segments of its business due to inflationary pressures. The company has started notifying customers of these changes,” Nikkei said.

As COVID-19 pushes people to work from home, PC sales increased dramatically in 2020-21. That bubble has since burst, however, and major Intel buyers like Acer, ASUS and others have warned of a slowdown in sales. Acer chairman Jason Chen even remarked that his company no longer sees a shortage of chips. “Some of the CEOs of the chip suppliers even called me recently to buy more chips from them. The situation has changed,” he told reporters on Wednesday.

Rival chipmaker TSMC previously said it would raise prices by a “single-digit” percentage starting next year. Since this company makes AMD’s chips, consumers probably won’t find as much price relief by switching brands either.

Some device makers are starting to build up inventories, which could lead to deals in the near term. However, the longer-term prospects are less clear. Samsung has reportedly asked suppliers to stop shipping parts used to make PCs, TVs and other devices.

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