Rising CPU prices, Intel 14nm chip shortage, AMD prices...?

[VirtualLarry]

So I was perusing Newegg today, and saw some interesting things. Things like i5-8400 CPUs priced at $299. i7-7700K at $599.


If Intel prices are going up, because of shortages, what will that do to AMD prices? Will we see the equivalent of "mining prices" for CPUs, now, and will AMD increase their MSRPs to go along with the market?

Or will AMD buck the trend, and use this opportunity to gain marketshare?

Someone posted a Mindfactory chart, showing AMD sales at 70%, dwarfing Intel.

https://forums.anandtech.com/thread...d-possibly-9600k.2554023/page-3#post-39588930

 

[jpiniero]

So I was perusing Newegg today, and saw some interesting things. Things like i5-8400 CPUs priced at $299. i7-7700K at $599.

Those are third party sellers I imagine... who gouge all the time.

 

[mdram]

look in the deals section
amd 2700 for 220

 

[jpiniero]

https://www.digitimes.com/news/a20180927PD204.html

Claim that the tight supply will be until 2H 19.

 

[maddie]

So I was perusing Newegg today, and saw some interesting things. Things like i5-8400 CPUs priced at $299. i7-7700K at $599.


If Intel prices are going up, because of shortages, what will that do to AMD prices? Will we see the equivalent of "mining prices" for CPUs, now, and will AMD increase their MSRPs to go along with the market?

Or will AMD buck the trend, and use this opportunity to gain marketshare?

Someone posted a Mindfactory chart, showing AMD sales at 70%, dwarfing Intel.

https://forums.anandtech.com/thread...d-possibly-9600k.2554023/page-3#post-39588930

Does it matter what AMD does? Meaning that retailers have the ability to raise prices independently of MSRP.

 

[frozentundra123456]

So I was perusing Newegg today, and saw some interesting things. Things like i5-8400 CPUs priced at $299. i7-7700K at $599.


If Intel prices are going up, because of shortages, what will that do to AMD prices? Will we see the equivalent of "mining prices" for CPUs, now, and will AMD increase their MSRPs to go along with the market?

Or will AMD buck the trend, and use this opportunity to gain marketshare?

Someone posted a Mindfactory chart, showing AMD sales at 70%, dwarfing Intel.

https://forums.anandtech.com/thread...d-possibly-9600k.2554023/page-3#post-39588930

In the US at least, the 8400 is 225.00 on Newegg and 205.00 on Amazon. I also dont know if it is correct to claim Intel is raising prices, I would assume if they are going up in certain regions it is due to the retailer.

 

[VirtualLarry]

Does it matter what AMD does? Meaning that retailers have the ability to raise prices independently of MSRP.

It does. Perhaps not immediately, but longer-term.

The "mining boom", seeing retailers raise and gouge prices on graphics cards, seems to have to translated, longer-term, into (at least Nvidia) raising prices (raising MSRP) on newly-introduced graphics cards.

If there's a sustained shortage of Intel 14nm CPUs, and then AMD sees that, and raises MSRP (because retailers are all raising MSRPs), then that might mean, a few CPU generations from now, prices might be double?

It's not inconceivable, and it's worry-some, so someone that has to watch their pennies. Even the threat of potential tariffs has me concerned. The combination of both, doubly-so.

All things considered, CPU pricing in the marketplace was largely set in place by Intel, and their marketing team years ago, to determine crucial "price points" for every step of their CPU SKU stack, precise dollar amounts.

AMD largely matched them, when they could, for price/performance.

Now that that benchmark pricing is being adjusted (presently by retailers, who knows if Intel will adjust their MSRPs), then who knows what will happen to the market?

Given prior fixed price points, in the face of constant inflation, and increases in performance due to newer processor generations, honestly, we've been getting a pretty "good deal", all along. That could change. You thought that DRAM (DDR4 specifically) prices were harsh, well, what if CPU prices follow that trend, and instead of being able to afford a 2600X for $180, what if you're only able to afford a 200GE for $150? That's what I'm concerned about.

 

[maddie]

It does. Perhaps not immediately, but longer-term.

The "mining boom", seeing retailers raise and gouge prices on graphics cards, seems to have to translated, longer-term, into (at least Nvidia) raising prices (raising MSRP) on newly-introduced graphics cards.

If there's a sustained shortage of Intel 14nm CPUs, and then AMD sees that, and raises MSRP (because retailers are all raising MSRPs), then that might mean, a few CPU generations from now, prices might be double?

It's not inconceivable, and it's worry-some, so someone that has to watch their pennies. Even the threat of potential tariffs has me concerned. The combination of both, doubly-so.

All things considered, CPU pricing in the marketplace was largely set in place by Intel, and their marketing team years ago, to determine crucial "price points" for every step of their CPU SKU stack, precise dollar amounts.

AMD largely matched them, when they could, for price/performance.

Now that that benchmark pricing is being adjusted (presently by retailers, who knows if Intel will adjust their MSRPs), then who knows what will happen to the market?

Given prior fixed price points, in the face of constant inflation, and increases in performance due to newer processor generations, honestly, we've been getting a pretty "good deal", all along. That could change. You thought that DRAM (DDR4 specifically) prices were harsh, well, what if CPU prices follow that trend, and instead of being able to afford a 2600X for $180, what if you're only able to afford a 200GE for $150? That's what I'm concerned about.

The world is vast and while a general increase in PC prices would be unsavory, I for one, have many other hobbies and interests. I often tell my friends that I could live many lifetimes and still have novel interesting things to do.

 

[Campy]

Prices are definitely rising on Intel CPUs here in northern europe.

 

[prtskg]

The problem with increasing prices is that companies try to stick with increased ones. Examples are dram manufacturers and Nvidia

 

[DrMrLordX]

What will AMD do in response to Intel 14nm CPU shortages and 10nm CPU delays? Probably try to secure market share.

That means hitting the market with as many CPUs as they can to keep the channels populated with product, which would effectively eliminate gouging. They will keep MSRPs in line with Zen/Zen+ products to continue driving product into the hands of the same buyers that have been looking at Ryzen since 2017, if not buying it.

AMD has had competitive products in the past (albeit the distant past). They know what Intel did with discounts and other shenanigans to prevent AMD from gaining market share. They also know that they were supply-restricted, which prevented them from selling more CPUs at those times than they did. So the way to beat back Intel is to keep the market fully stocked while Intel is unable to do the same. Lisa Su can not allow it to be 2005 all over again.

If AMD will raise CPU prices anywhere, it may be in the server room where some are already saying, "If you want to upgrade your server hardware to something recent, you will basically have to buy AMD, because we can't source enough Cascade Lake for everyone". But even then, I think AMD will be better off gobbling up market share instead of trying to increase margins. Marketshare and mindshare first, margins later.