Friday, November 16th 2018

Intel Cutting Retail Processor Supply for Holiday 2018

Prices of retail packages of Intel Core desktop processors could continue to rise over Q4-2018, as the company has reportedly cut their supply, in favor of tray/reel shipments to OEMs. This could mean DIY favorites such as the Core i5-8400, the i5-8600K, i5-9600K, or even Core i7 models such as the i7-8700K, i7-9700K, and the flagship i9-9900K could be severely in short supply, or heavily marked up wherever available. Intel recently devised a strategy to increase its Core processor volumes by pumping in an additional $1 billion to its usually-$15 billion capital expenditure, to fire up small-scale manufacturing facilities around the world, to augment its bigger fabs located in Malaysia and Vietnam.

Sites like Mexico, Israel, and Ireland are beneficiaries of this move, and are being expanded. Much of Intel's efforts appear to be focused on making sure notebook and pre-built PC manufacturers aren't starved of processor inventory. The DIY retail channel, which consists of boxed processors, will foot the bill for this move. A good example of understocked retail channel would be the $499 Core i9-9900K processor being sold for upwards of $900 in some online stores. AMD is in an enviable position to fill the void, comments PCGamesN. Prices of its Ryzen desktop processor PIBs are either flat, or marginally cut; and socket AM4 motherboards are generally cheaper than LGA1151 ones.
Sources: PCGamesN, DigiTimes
Add your own comment

106 Comments on Intel Cutting Retail Processor Supply for Holiday 2018

#101
$ReaPeR$
imo the whole mentality towards economy and trade is stuck in the 19th century and that creates the problems we see today even on the manufacturing side of things let alone the job issue. im simplifying but i think that basically, that is the root of the problem.
Posted on Reply
#102
lexluthermiester
$ReaPeR$imo the whole mentality towards economy and trade is stuck in the 19th century
You might be right. Changing things is going to take a lot of time and effort.
Posted on Reply
#103
kanecvr
Vya DomusNo we haven't seen it actually. Even back then with the last iteration of Terascale that outperformed anything Nvidia had on every metric they still couldn't claw back enough market share to take the lead. No matter how good the product is it seems nothing can permeate the mindshare Nvidia has built. I don't know how AMD can ever do that, but it's clear that a better product isn't enough.

The only reason this is somewhat working with Intel currently is because they genuinely seem to not know how to react properly to a competitive product. At this point in time a CPU that's 5% faster and god knows how much more expensive simply isn't a compelling enough offer from neither companies but Intel doesn't get that.
I believe there are ways AMD can win back mindshare:

1. AMD releases a product that is significantly superior to Nvidia's.
2. Nvidia drops the ball on future generation GPUs.
3. A combination of both.

But they're pretty far fetched at this point...
Posted on Reply
#104
Kan215
All i know is intel give up in up to satisfy oem and their greed. Definitely No more intel cou if we have amd cpu in this era. Greed cannot win
Posted on Reply
#105
BorgOvermind
GoldenXWe have no competition! Let's just keep the current architecture and node for as long as we can, what can go wrong?
I guess it's related to cost reduction and it's the greatest mistake a company can make.

"The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. " This quote is also used by Samsung.
Posted on Reply
#106
rtwjunkie
PC Gaming Enthusiast
Kan215All i know is intel give up in up to satisfy oem and their greed. Definitely No more intel cou if we have amd cpu in this era. Greed cannot win
Well, since you admit to not knowing much, let me school you. Contracts are legally binding. Intel has to fulfill those contracts. They have no contract with you or any individual buyer. If you have limited capacity, it has to go for commitments.

Welcome to TPU with your first post!
Posted on Reply
Add your own comment
Apr 26th, 2024 21:11 EDT change timezone

New Forum Posts

Popular Reviews

Controversial News Posts