Intel confirmed the previous rumor is true, they will increase product prices in the near future.
Intel recently released its Q2 2022 earnings report. The company’s revenue fell 22% year-on-year to $15.3 billion, ending the quarter with a loss of $454 million.
The chipmaker attributed part of the reason to low demand for PCs and components due to the recent slowdown in economic activity. Over the past few years, there has been a spike in demand for computers as the pandemic forced people to work from home. As a result, many tech companies have posted record profits, but that seems to be over, with Intel saying it expects overall PC sales to fall 10% this year.
The company also confirmed it is planning to raise prices on a variety of products including CPUs, Wi-Fi chips, and controller chips. The price hikes will take effect in the fourth quarter, with Intel CFO David Zinsner saying the company is suffering from an increase in inflation, which is an expense that needs to be passed on to customers at some point. some.
The company also mentioned discontinuing the Optane memory business and ceasing development of its 3D Xpoint technology, incurring a $559 million inventory loss charge for the quarter. Intel sold the SSD division to SK Hynix in 2020, but initially decided to keep Optane.
Intel confirmed that it also sold its drone business, which includes about 9,000 drones that provide light shows for various events, such as the Olympic Games and Super Bowl halftime shows. According to a report from The Register, Elon Musk’s younger brother Kimbal has acquired the division.
However, Zinsner remains optimistic that the situation could improve by the end of the year. “We expect Q2 and Q3 to be the bottom of the company’s financials,” he said. Starting next year, Intel will likely benefit from the recently passed CHIPS Act, which gives the semiconductor industry $52 billion in subsidies to build new devices.
Reference: TechSpot
