CPU Processor Prices Are Rising in 2023, Steadily but Surely!

The cost of CPU processors has been steadily increasing, except for notebook processors, which have dropped by 9%.

Today’s technology news reports that from the second half of last year to the present, the PC market has faced a significant decline in demand, resulting in shipments hitting a new low for over a decade.

Unfortunately, the performance of the two major CPU manufacturers, AMD and Intel, is not impressive. In contrast, the prices of their products continue to rise.

However, the situation of desktop and notebook markets differs. Recently, Intel released its Q1 quarterly financial report, which showed a 36% decline in revenue, hitting a record low since 2010, and losing money for two consecutive quarters.

The client computing department, responsible for producing mainly desktop and notebook processors, experienced a 32% drop in shipment volume, resulting in a 5% increase in the average ASP. This increase in price was due to the growth in demand for enterprise and gaming PCs.

intel core cpu lineup

Moreover, revenue from notebook processors fell from USD 6.0 billion to USD 3.4 billion, with a corresponding 37% drop in shipments, resulting in a 9% decline in ASP.

In short, during the past Q1 quarter, Intel’s desktop processors were 5% more expensive on average, with a slight rise in high-end demand. Notebook processor prices, on the other hand, fell by as much as 9%, and low-end processor shipments accounted for a higher proportion.

Amidst all this newer technologies like Apple’s own silicon make it harder for the PC industry to capture some of the more lucrative markets as lots of server farms etc. are shifting to Apple silicon based systems.

What are your views on all of this? Do let us know in the comments section.

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CPU Processor Prices Are Rising in 2023, Steadily but Surely!

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