AMD is gearing up to launch its Ryzen 7000 series processors in the coming weeks, and if a new report is to be believed, it won’t raise the prices of its “mainstream” processors.
The news comes from the industry channel Digitimes (opens in new tab), which reports that Intel is expected to raise prices for its processors, starting with its upcoming Intel Raptor Lake series. In the meantime, AMD should not follow suit, as a Twitter analyst Kok Hua Chia (opens in new tab) explains.
Main: 1. For core CPU/GPU products, AMD will definitely not follow Intel in the price increase.2. New HPC products used in server/AI can expect better prices.3. Rumors about AMD potentially using Samsung’s foundry for cost reduction are still under debate/negotiation.August 22, 2022
If this news is true, it will be a huge win for AMD as we move towards the next generation of processors and a renewed struggle between industry giants AMD and Intel.
AMD almost lost the price advantage, but expected to recover
There is unquestionably bragging rights to produce the best processors on the market in terms of power and performance. Yours are the chips that gamers and industry professionals clamor for and those voices can be very loud.
But the vast majority of consumers don’t really need, or even want, the best, they want the good enough – especially if it means they can save some money during uncertain economic times.
Raptor Lake chips may be the best Intel processors ever made and they run around AMD Ryzen 7000 series processors, but if customers can’t afford them, what’s the point?
This has been AMD’s main advantage for over a decade, but with its recent Zen 3 Ryzen 5000 series chips, it has reduced its own price gap with Intel, negating much of what made AMD so popular. With the Ryzen 5000 series, the performance of the chips themselves certainly warranted the price increase, as they were unquestionably the best AMD processors ever made. As such, we wouldn’t be surprised if – in this inflationary global environment – the Ryzen 7000 series also sees a similar price increase.
If that’s not the case, however, that would be fantastic news and puts AMD in an excellent position to be competitive in terms of performance vis a vis Intel, but also at a much cheaper price.
This may be part of why some industry analysts cited by Digitimes think Intel’s decision to raise its prices is a “dangerous move.” There’s always a mystique about being the “best,” but with cost-of-living crises hitting major consumer markets in America and Europe, it could be AMD that ends up laughing all the way to the bank.