After posting near-disastrous 2Q 2022 earnings, Intel confirmed that it will raise the selling prices of all of its key components, including CPUs. Intel reported that it missed its double-digit revenue and earnings per share targets.
Intel’s client computing and data center divisions both saw huge declines in revenue, to which the company reiterated that they are working hard to improve, with a series of premium products planned for the second half of 2022, with Chipzilla saying that prices for key products, including CPUs, will be increased.
Citing The Motely Fool, Intel’s chief financial officer David Zinsner said.
"I would like to elaborate three things here: first, we will launch a series of excellent products in the second half of this year; second, I think the process of new product development and sales is very smooth in all our businesses; and third, we are increasing the selling price, which is estimated to be effective in the fourth quarter of this year. We are well prepared for this. The Client Computing Group (CCG) will have a higher price increase than the Data Center and AI Business Group (DCAI). Both business groups will have price increases, but CCG will be more pronounced. So in the second half of this year we expect CCG performance to improve."
In fact, before Intel officially confirmed the price increase there was information out there, with some sources saying that CPUs and their components could increase by up to 20%. The list of affected products includes CPUs for client computing, as well as WiFi connectivity controllers and other components.