During the ongoing economic crisis, regular product prices like gas and food are increasing.
In this article, I will explain the current market situation of the processor.
I will also describe what the possible price circumstances will be at the end of 2023.
So, tag along.
Are PC Processor Prices Poised to Rise?
Shortly say,yes.
Intel and AMD CPU prices are going to rise.
Many are saying that up until 2022, the price of the processors has increased by 20%.
And they actually did.
It happened because Intel lost nearly$500 millionin its second quarter of 2022.
They also said that in their companys history, this was their worst quarter.
To recover the loss, Intel is increasing its CPU price.
This price growth can still go on in 2023.
AMD also raised the CPU price in 2022.
However, around November 2022, AMD reduced the price of theirRyzen 7000-seriesCPUs.
They did that to compete with Intels 13th-generation processors.
But Alder Lake processors have shown tremendous performance since 2021.
Nonetheless, Intels processor lineup is at its strongest point for a long time.
But due to the current unpredictable market, Intel is also experiencing inflationary cost pressure like AMD.
Go to the following section to know why CPU prices are rising.
Why Do CPU Prices Go Up?
Chip shortage is going on all over the world.
The COVID-19 pandemic and the ongoing war between Russia and Ukraine are responsible for the supply and CPU shortage.
However, the demand for CPUs is running high on the market.
But manufacturers are not getting enough supply.
This miserable situation gives the manufacturers a solid hit in their production.
Thats why you see a shortfall in CPUs and price increments in the market.
Furthermore, the component used in theCPU architectureis expensive.
The cost of raw materials such assiliconandcopper,labor, andshippingare steadily rising.
The manufacturer is also responsible for the overpriced CPU.
As you see, the world is relying more on technology.
Everyone wants high-performance CPUs.
Because of the increased demand, the manufacturer prioritized their supplies to higher-paying customers, such asdata centersandserver farms.
Let me give you an example that happened in 2020 during the pandemic.
It will help you understand effortlessly.
In 2020, Intel Core i9-10900K was released.
In the beginning, it would cost around$488.
It was pretty awesome for high-end gaming.
But when the pandemic hit and the CPU shortage started, the price was increased toover $600.
The AMD manufacturer did the same thing with theirAMD Ryzen 9 5900X.
Starting price of the processor was$449.
And after that, it was around the$600price range.
So, now you know why the value of the processors goes up.
Have you not noticed that yet?
Then lets look at some Intel & AMD CPUs and compare their prices.
But, the starting price of 7600 was more than its previous ones.
On the other hand, 5600X costs$50more than Ryzen 5 3600X when it was released.
Ryzen 3700X, released in 2019 at $329 MSRP.
Surprisingly, Ryzen 5700X came into the market after three years with a $299 price tag.
It happened because AMD released Ryzen 7700X just after three months at $399.
The price of this Ryzen 7700X processor didnt lower that much.
As expected, the launch price of the Ryzen 9 5950X was more than the 3950X.
But unexpectedly, 7970X was $100 less than 5950X.
I was also shocked when I saw the news.
Though, I think, they did that to attract the consumers attention.
Now, lets see some Intel CPUs.
Take a look at the Core i5-11400, 12400, and 13400.
They were released in individual years, but they launched almost at the same price.
The price difference wasonly$10.
However, in the current market, the value of the Core i5-13400 is more than the other two.
It will cost you around$240to$265.
The typical price growth you might see in the chart among Core i5-11600K, 12600K, and 13600K CPUs.
The launch price gap between them was$30to$40.
But that didnt happen with Core i9-11900K, 12900K, and 13900K processors.
Intel also does this kind of thing to get the attention of customers.
When will the CPU Prices Drop in 2023?
Its hard to predict the exact date or month when the prices will drop in 2023.
On Black Friday & Cyber Monday, the prices often drop.
Are the CPU prices going down, or when the price will be lower in the future?
Its kind of a common question of all the tech geeks.
To know that, you have to become a psychic.
you’re able to say, its one kind of trend.
Competition plays another key role in determining CPU prices.
Manufacturing organizations like AMD & Intel always aim to offer the best product at a reasonable price.
Its one kind of the oldest trick in the book to lure customers to their products.
If they want to attract consumers in this way, the price can go lower.
Supply & demandandthe state of the economyalso affect CPU prices.
If you keep track of the current market, you should know how high the demand is.
But the supply is short.
Hence, the CPU price is huge.
Those days, the cost of the processors goes down most of the time.
you’ve got the option to get your desired CPU if you are lucky enough.
As you’re able to see, it is uncertain when the prices will drop in 2023.
All it’s possible for you to do is stay updated and keep an eye on it.
FAQs
What is a good price to spend on a CPU?
Are CPUs in shortage?
Is the CPU shortage over?
According to Intel Chief Executive Pat Gelsinger, the chip shortage has almost recovered.
By the year 2024, the imbalance in the chip supply will completely resolve.
Final Thought
Nobody knows when the processors price will go up or decline.
It is entirely in the hands of the manufacturers.
you’ve got the option to wait and watch if you have enough patience in yourself.
I hope I have cleared all your doubts about the price issue.
Comment below if you have any queries.
