Monday, January 17th 2022

Report Forecasts Increased AMD EPYC Processor Pricing, Intel Sapphire Rapids Xeons Delayed

Server processors tend to be one of the most profitable businesses for AMD and Intel. Thus, investment groups and analysts closely monitor happenings in the server and data center world. A report from Mizuho Securities (investment bank) Managing Director Jordan Klein states that many upcoming changes on the server processor front are coming this year. Mr. Klein cites sources over at Insupur Systems, one of the most prominent server vendors. More precisely, Dolly Wu is the VP and GM of Datacenter/Cloud at Inspur. According to the report, AMD and Intel will change their strategy in the server market going forward in 2022.

As far as AMD is concerned, the company plans to increase the pricing of its EPYC processors by 10-30%. This increase should be a bit easier on the strategic cloud customers. The report also indicates that as the demand far exceeds the supply of EPYC processors, AMD increases prices and makes a "take it or leave it" offer, resulting in most customers accepting the increased costs. Another interesting tidbit from the report was the talk about Intel. The blue team laid out its strategy to launch highly-anticipated Sapphire Rapids Xeons in Q2 of 2022. However, it will maybe get delayed to Q3 of 2022. Intel doesn't plan to increase prices to remain competitive with AMD, so the server space will see Intel fighting to regain the lost market share.
Source: Tom's Hardware
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6 Comments on Report Forecasts Increased AMD EPYC Processor Pricing, Intel Sapphire Rapids Xeons Delayed

#1
Patriot
Can't imagine why the 96c Zen4 wouldn't cost more than the 64c Zen3.
Posted on Reply
#2
DeathtoGnomes
AMD can raise Epyc prices and still be lower than Intel, depending on the increase amount.
Posted on Reply
#3
Daven
PatriotCan't imagine why the 96c Zen4 wouldn't cost more than the 64c Zen3.
This story is only about Zen 3. Prices are being raised over the initial March 2021 launch price of Zen 3 Epyc.
Posted on Reply
#4
Minus Infinity
While AMD is in the box seat and demand outstrips supply and this was expected, I'd rather they make the huge profit margins at this end of the spectrum than the desktop products. Still it didn't take long for AMD to start down Intel's own path of gouging for gouging's sake, not that any one else is different.
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#5
Patriot
Minus InfinityWhile AMD is in the box seat and demand outstrips supply and this was expected, I'd rather they make the huge profit margins at this end of the spectrum than the desktop products. Still it didn't take long for AMD to start down Intel's own path of gouging for gouging's sake, not that any one else is different.
www.forbes.com/sites/linleygwennap/2021/08/30/tsmc-chip-price-hike-a-big-deal-for-some-customers/ Price hikes of 10-20% straight from tsmc effective in... Jan ala now.
Posted on Reply
#6
Renald
On Google Cloud Platform, AMD Epyc Rome is 3$/month more expensive than Intel Haswell, at a base of 175$/month (so 1.7% more).
So clearly, Cloud platforms are switching to AMD for higher IPC at the same price.
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May 19th, 2022 09:20 EDT change timezone

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