Intel Price Hike To Affect Upcoming CPUs, Motherboard Chipsets & Other Components In Q4, Up To 20% Increase

Intel Price Hike To Affect CPUs, Motherboard Chipsets & Other Components In Q4, Up To 20% Increase 2

Intel's upcoming price hike is not only going to affect CPUs but motherboard chipsets too which can lead to higher prices for 700-series products.

Intel 13th Gen Raptor Lake CPUs & 700-Series Motherboard Prices To See Price Hike In Q4, Up To 20% Increase Expected on Components

Previously, Intel had only stated that CPUs & a list of components will be affected by the price hike in the fourth quarter of 2022. Now ITHome (via Board Channels) has learned that the price hike will also affect motherboards. The reason is that the chipsets used by Intel motherboards are designed by the blue team themselves rather than a 3rd party. As such, the pricing will see a slight bump and that could affect the upcoming Intel 700-series motherboards which will support 13th Gen Raptor Lake CPUs.

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Intel has already stated that the pricing adjustment will be more significant in the CCG or Client Computing Group. The CCG is responsible for the mainstream computing platforms such as the upcoming 13th Gen Raptor Lake and 700-series motherboards. If that's the case, then consumers should be expecting to pay quite a bit more than what they did last gen to secure next-gen chips & motherboards.

I'd say the other thing is we've got a good set of products coming out over the course of the second half of the year. And I think we're kind of operating with the wind at our sails in terms of product offerings in all of our businesses. And then third, we are increasing pricing, and pricing generally takes effect in the fourth quarter. We've done a fair amount of time.

We also will see more pricing improvement in CCG than DCAI. They're both -- we're adjusting pricing, but the pricing is more significant in CCG. And so that also gives CCG a lift in the later part of the year.

David Zinsner -- Chief Financial Officer at Intel via The Motely Fool

Intel's CCG business was down 25% year over year and 15% below the original Q2 guidance in the previous financial report. That took a toll on Intel and the company has since decided that they will increase the prices of their components to make up for the losses not only that but the price hike also aligns with the inflation surge, not only within the US but globally which has led to consumer product prices being hiked by up to 9.1% in June, a 40-year record. The final prices have not been circulated to partners or customers but we can expect that to happen as we enter the next quarter.

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