Intel will increase the prices of Core and Core Ultra processors for private users by roughly 10 % within one day.

Intel plans to raise consumer processor prices by 10%

The South Korean edition ET News reports that a major microprocessor manufacturer has decided to change its pricing policy in the near future.

What Intel announced
On March 19, the company informed its key customers of an upcoming increase in the cost of central processors for desktop PCs.

* The hike will be 10% and will take effect by the end of the current month.

* The markup will affect most of the main models from Intel’s wide CPU lineup.

Why now
* Demand for AI processors is growing: As data centers for artificial intelligence require increasingly powerful chips, the supply of consumer microchips has become limited.

* Need to preserve margins: In a component shortage environment, Intel is forced to adjust prices to maintain profitability.

The role of the processor in the PC ecosystem
* The central processor is a key component of any computer.

* On the desktop CPU market, Intel holds about 70% share. AMD and Qualcomm are also expanding supply, but their market position remains significantly lower.

Since most manufacturers use Intel chips, price increases can quickly translate into higher production costs and reduced margins.

Further rise in memory costs
* Demand for memory has also surged due to investments in AI infrastructure.

* According to Counterpoint Research, RAM prices rose by almost 1.8 times in the first quarter compared with the previous quarter.

PC manufacturers’ reaction
* The main concern is rising component costs, which could cut operating profit.

* In response, many large OEMs are diversifying supply chains and boosting production of high‑performance models for AI applications.

* The strategy involves selling premium devices at higher unit prices to offset cost increases.

Forecasts and consequences
TrendForce predicts that if memory and processor prices rise simultaneously, the share of these two components in laptop component costs could reach 58%.

* For standard models, retail prices could increase by more than 30% when considering only memory growth;

* With processor price hikes included, the overall gain could approach 40%.

Thus, the combination of chip shortages and rising prices creates pressure for both PC manufacturers and end consumers.