Intel reportedly plans to raise its processor prices which may push brand PC vendors into making purchases in advance, according to industry sources.
The supply chain noted that this strategy is often used by suppliers as a way to stimulate short-term sales. While this may boost financial figures for one quarter, it could increase the operational decline in subsequent quarters.
Sources noted an oversupply of processors has emerged. Whether or not Intel's strategy will drive shipments is unclear.
Intel reportedly gave a 5-10% discount on its recently released Alder Lake platform processor. And later it was reported that Intel would raise prices for PC and server processors and Wi-Fi chips after autumn.
Intel said it previously indicated it would increase sale prices for some products due to inflation and it had already notified customers of the adjustments. In response, notebook brands said they received the notification, but whether it would result in advance pull-ins before Intel raises prices would be based on their requirements, the sources said.
The sources revealed that AMD mulled increasing prices to reflect costs at the end of 2021, but brand vendors did not approve, which ultimately resulted in no price hike. As a result, Intel's chips stayed at low levels. But Intel has now hardened its stance. Whether that means Intel will slightly raise processor prices remains to be seen.
Product price fluctuations reflect the supply and demand situation. In this case, second-half notebook demand is the driving factor. Notebook ODMs pointed out second-half 2022 shipments will be weaker than second-half 2021, but quarterly growth is still expected from a single-quarter perspective.
Quanta Computer and Compal Electronics both expect third-quarter shipments to surpass the second quarter. Compal said it is possible the fourth quarter could exceed the third.
Wistron expects third-quarter notebook shipments to be better than the second quarter, while Inventec estimates third-quarter shipments will decline by less than 5% compared to the second quarter. Regardless of third-quarter performance, ODMs believe overall third-quarter 2022 shipments will be weaker than third-quarter 2021.
DIGITIMES Research estimates third-quarter notebook shipments will increase 14.3% quarterly, benefiting from deferred demand in the second quarter due to COVID-induced lockdowns in China; however, it will witness a double-digit on-year decline. Brands particularly impacted by the lockdowns and materials shortages in the second quarter, such as Apple and Hewlett-Packard (HP), will rebound significantly once the aforementioned issues are resolved.
Apple's third-quarter shipments are expected to increase 43.4% over the second quarter, according to DIGITIMES Research. Apple was affected by the lockdown of Quanta's Shanghai plant, which delayed shipments. Additionally, Apple's new MacBook Air is highly anticipated by consumers.
HP is expected to see a quarterly increase of 25.1% in the third quarter, driven by the easing of the IC shortage, according to DIGITIMES Research.
Article translated by Eifeh Strom
