Recent reports indicated that Intel is purportedly increasing the prices of its 13th Generation Raptor Lake and 14th Generation Raptor Lake Refresh processors by as much as 10%. While this adjustment may be applicable within the U.S. market, the international markets are experiencing rises of up to 20%. Although the initial reports correlated the price hikes specifically with Raptor Lake, the price increase also extends to the 12th-generation Alder Lake processors.
Danawa (via Harukaze5719), a renowned Korean price-tracking and comparison platform, shows that the cost of the Core i3-14100F has escalated by 15% from late September to mid-October. Concurrently, the prices of the Core i5-14600KF and Core i5-12400F have risen by 13% and 11%, respectively. Additionally, the cost of the Core i5-14400F has increased by 6%.
Intel 12th, 13th, and 14th Generation Processor Price Hikes
Processor | Korea | Japan |
|---|---|---|
Core i7-14700K | N/A | 5% |
Core i7-14700KF | N/A | 5% |
Core i5-14600KF | 13% | N/A |
Core i5-14400 | N/A | 20% |
Core i5-14400F | 6% | 11% |
Core i5-12400F | 11% | N/A |
Core i3-14100 | N/A | 10% |
Core i3-14100F | 15% | 2.6% |
Although the Core Ultra 200S (codenamed Arrow Lake) processors have been available on the market for some time, there likely remains considerable demand for previous-generation processors. Subpar performance and elevated prices have somewhat deterred consumers from adopting Intel's Arrow Lake series. A significant aspect of Intel's Arrow Lake marketing strategy has heavily emphasized AI. Yet, it is evident that not all consumers find this aspect compelling enough to justify upgrading to Arrow Lake.
Increasing prices for Alder Lake and Raptor Lake may potentially enhance Intel's profit margins. The chipmaker is manufacturing these chips using the Intel 7 process node, which is now fully mature and likely operating at full capacity. Conversely, Arrow Lake relies on a variety of external process nodes supplied by TSMC, so there is limited wiggle room for pricing flexibility. Therefore, instead of lowering prices for Arrow Lake, it is more feasible for Intel to elevate prices for processors produced on its in-house nodes, which it directly controls. Arrow Lake prices have improved since the launch; however, we suspect that the sales are not exceptional.
Intel has not increased prices across its entire Alder Lake or Raptor Lake product lineup; instead, it has done so exclusively for strategic SKUs, particularly the most popular mid-range SKUs, such as the Core i5-14400 and Core i3-14100F. These categories of SKUs generate the highest sales volume for Intel, which likely explains why they are the ones experiencing the most significant price increases in international markets.
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