Intel to Raise Prices of Raptor Lake CPUs by 10% Amid AI PC Performance Issues

Amid a lukewarm response to Intel’s latest processor line, consumers are gravitating toward the more established Raptor Lake CPUs, which is reportedly contributing to a surge in prices.

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Despite boasting enhanced AI functionalities and improved power efficiency, Intel’s Lunar Lake processors have not captured the consumer market as anticipated. This disappointing trend has not gone unnoticed by Intel, which has recognized the situation persists even months later. While global PC shipments experienced substantial growth in the second and third quarters—largely due to the transition from Windows 10 to Windows 11, particularly outside North America—the performance of newer Intel processors has faced hurdles.

While AI-focused PCs edged up sales figures, there are multiple underlying reasons for the sluggish uptake of Intel’s next-generation offerings, such as Arrow Lake and Lunar Lake.Digi Times reports insights from supply chain sources indicating that Intel is contemplating a price increase of approximately 10% for its Raptor Lake CPUs. Though this has yet to be officially confirmed, recent listings in markets like Japan and South Korea reveal that the prices for prior generations, including Alder Lake and Raptor Lake variants, have already seen upward adjustments.

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Insights suggest that while the Raptor Lake CPUs have experienced an uptick of around 10% in pricing, certain WeUs have been marked up by over 20% in various regions. This projected hike is affiliated with the “underperformance”of AI PCs, which have yet to see widespread acceptance as initially forecasted. Given that Raptor Lake processors provide robust performance sufficient for most consumer needs, there remains little incentive to upgrade to AI-capable alternatives like Lunar Lake, which lack the compelling features necessary to motivate such a transition.

Considering that Raptor Lake processors are reportedly priced over $200 less than their Lunar Lake counterparts, leading manufacturers like Lenovo, HP, and Acer continue to procure the older models to create cost-effective systems that are still in high demand. Compounding this issue, recent hikes in DRAM prices, affecting both DDR4 and DDR5, along with a 15-25% increase in SSD NAND pricing, have made building affordable PCs more challenging than ever. This cost pressure further incentivizes PC makers to stick with older chip models.

With the current dynamics of reduced supply for Raptor Lake and increasing demand, Intel is actively evaluating price adjustments for its remaining inventory. Although an official announcement is pending, multiple sources have indicated similar developments, and the impacts are already becoming evident this month.

News Source: Digi Times

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